Mobile Telecommunications Company Saudi Arabia · TADAWUL:7030
Mobile Telecommunications Company Saudi Arabia — Zain KSA — Q1 2023 Earnings Presentation
33 slides from Mobile Telecommunications Company Saudi Arabia's earnings presentation, Jul 1, 2023
Slide 1: Welcome to Zain KSA Q1 2023 Earnings call
Welcome to Zain KSA Q1 2023 Earnings call qrco.de/zain23q1
Slide 2: Disclaimer
Disclaimer Expectations and projections regarding future performance of the company referenced in this presentation are ‘forward- looking statements’ within the meaning of applicable securities laws and regulations. These are statements which the management believes are true at the time of their pre
Slide 3: Introduction
Introduction Zain KSA established itself as a reliable telecom operator and a digital service provider whose services include telecom services, 5G network, FinTech (Financial Technology), cloud computing, IoT solutions, fiber services, drones, and many others. Zain KSA is committed to the continuous
Slide 4: Our Values
Our Values Agility We adapt quickly to change and make timely decisions Belonging We believe that we are one family and Zain is our second home Customer centric We strive to provide a distinctive service that exceeds customers' expectations Inclusion We accept our difference and believe that our div
Slide 5: Our Strategic Pillars
Our Strategic Pillars The below eight pillars come as a natural evolution and extension of the strategy Zain KSA has successfully delivered on as well as the expectations of stakeholders. Creative positive impact Generate value from and for Adopting sustainable and Leveraging areas of strength, outc
Slide 6: Our Shareholder Structure
Our Shareholder Structure Zain Group provides Zain KSA with operational, technical, brand financial support. Founding Shareholders 01 Zain Group 37.04% 02 HRH Prince Saud Bin Fahad Bin Abdulaziz Al Saud 2.98% 03 Saudi Plastic Factory Est. 2.93% Founders 47% 53% 04 HH Prince Sultan Bin Mohammed Bin S
Slide 7: Our Financial History
Our Financial History Covid 19 Pandemic Financial History 10,000 9,075 8,386 7,917 7,901 8,000 7,306 7,531 6,699 6,741 6,927 6,404 6,523 6,244 5,934 6,000 4,000 3,004 2,000 505 332 485 280 550 12 231 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (972) (980) (2,000) (1,
Slide 8: Our Board of Directors
Our Board of Directors Bader Nasser Al Kharafi Martial Caratti Ossama Matta Saud Abdullah AlBawardi Mr. Martial Caratti is a member of the Board Vice Chairman Mr. Matta was appointed the key role Mr. AlBawardi has more than 15 years of Directors of Zain Group since November A renowned regional econo
Slide 9: Our Management Team
Our Management Team Mehdi Khalfaoui Eng. Saad Al-Sadhan Eng. Abdulrahman Al-Mufadda Maher AlFawaz CFO CBWO CTO CSO Mr. Khalfaoui was appointed CFO in Feb-2017. Eng. Al-Sadhan’s professional career spans over 19 Mr. AlMufadda has more than 19 years in the Maher has over 18 years in the Network Engine
Slide 10: Operational Update
Operational Update Eng. Sultan Bin Abdulaziz AlDeghaither CEO 1 0
Slide 11: Towers Deal
Towers Deal In January 2023, we completed the selling stakes in the tower's infrastructure to Golden Lattice Investment Company (“GLIC”) owned by the Public Investment Fund (PIF), Zain KSA, HRH Prince Saud Bin Fahad, and Sultan Holding Company. Today we have transferred 3600 towers out of the 8,069.
Slide 12: Shareek Program
Shareek Program In the presence of HRH Crown Prince Mohammed bin Salman Zain KSA signed an agreement with Shareek to launch hyper-scale data centers
Slide 13: BoD recommendation to distribute cash dividends to shareholders
BoD’ recommendation to distribute cash dividends to shareholders
Slide 14: 2023 Q1 Financial Results
Closing the sale and ( ») leaseback of our passive 5 9 5 physical tower infrastructure . 5 Signed agreement Growth in profits inet partnership reinforcement program
Slide 15: Zain KSA Today
Zain KSA Today 8.7 Million 1,543 Zainers 249 Shops 40% Data Revenue 5,391 POS Customers Woman: 19 % (Excluding SMS & VAS) Local: 86% 9,952 Total number of sites 62 SAR 16,523 TB/Day 99% 98% 94% 62.5% 566 Cities covered by 3G Blended ARPU Average daily data traffic 2G 3G 4G 5G 479 Cities covered by 4
Slide 16: 5G leadership
Service Provider Regional Performance
Slide 17: LEAP 2023
LEAP 2023 We differentiated ourselves at this year’s LEAP, by focusing on strengthening local capabilities and empowering Saudi youth capabilities by supporting local content and sustainability. The experience we offered our attendees this year was centered around the beautiful world of Zain “A sust
Slide 18: Tamam Growth
Tamam Growth Tamam is a Fintech company established in 2019 in KSA and providing consumer micro-lending services in the kingdom under the supervision of the Saudi Central Bank. We offer instant financing without complicated documentation or visiting bank branches. 19
Slide 19: People Growth
People Growth We are investing in our workforce and local talent by training 50,000 young Saudis in the next three years. This supports Saudi Vision 2030's goals of digital transformation, economic diversification, and human development. Our aim is to enable a knowledge-based society and a smart dig
Slide 20: Sustainability
Sustainability CLIMATE CHANGE OPERATING RESPONSIBLY INCLUSION GENERATION YOUTH § Networks & Energy Consumption Transition § Strategic Approach & Communications § Waste Management & Circular Economy 21
Slide 21: Sustainability
Sustainability CLIMATE CHANGE OPERATING RESPONSIBLY INCLUSION GENERATION YOUTH § Protecting Customer Data Privacy § Responsible Supply Chain § Disclosure & Reporting § Social Responsibility 22
Slide 22: Sustainability
Sustainability CLIMATE CHANGE OPERATING RESPONSIBLY INCLUSION GENERATION YOUTH § Women in Technology § People with Disabilities § Elderly Community 23
Slide 23: Sustainability
Sustainability CLIMATE CHANGE OPERATING RESPONSIBLY INCLUSION GENERATION YOUTH § Child Online Safety § Digital Literacy § Youth Unemployment Zain KSA to train 50,000 young Saudi men and women in cooperation with the Ministry of Human Resources 24
Slide 24: Sustainability Rating (A-)
Sustainability Rating (A-) Score in the latest CDP Score Report Climate Change 2022 Corporate Social Responsibility (CSR) & Environment, Social, Governance (ESG) Metrics
Slide 25: Financial Update
Financial Update Mehdi Khalfaoui CFO 26
Slide 26: Financial Highlights
Financial Highlights REVENUE [Million SAR] GROSS PROFIT [Million SAR] GROSS MARGIN % 69% 62% 60% 59% 57% 58% +15% +9% 0% 5,445 5,315 9,075 4,885 7,917 7,901 +11% +179 (+244) (+14%) 1% -3% 2,404 2,422 1,236 1,452 1,415 2,179 2020 2021 2022 Q1 2022 Q4 2022 Q1 2023 2020 2021 2022 Q1 2022 Q4 2022 Q1 202
Slide 27: Financial Highlights
Financial Highlights Financial Debts [Million SAR] OPERATIONAL INCOME) [Million SAR] Financing cost [Million SAR] -47% 11.000 10.735 10.549 16% 9.860 180 Financing Cost 1,002 1,089 10.000 9.000 170 Borrowings (MFAs) 163 12% 8.000 MOF Loan 13% 5.660 168 160 6.008 LL 7.000 5.503 699 9% 150 8% 6.000 9%
Slide 28: Financial Highlights
Financial Highlights CASH BALANCE [Million SAR] CAPEX, CAPEX/ REVENUES [Million SAR] 1,103 +127% 37% 851 2,943 -70% -92% Capex - Gross Addition 20% Capex/Revenue 512 13% 375 375 10% 269 1,013 915 6% 2% 123 492 37 2020 2021 2022 Q1 2022 Q4 2022 Q1 2023 2020 2021 2022 Q1 2022 Q4 2022 Q1 2023 EBITDA –
Slide 29: Company Debt
Company Debt With financial support from financial institutions, shareholders, and the Ministry of Finance. Zain Saudi Arabia borrowings summary Outstanding Amount in Description Party Million SAR Murabaha Facility Arrangement (MFA) Consortium of eight banks 5,503 Government Loan (MoF) Ministry of F
Slide 30: Company Debt
Company Debt Evolve cost transformation initiatives. Taking Proactive Financial Measures • Opportunity to approach business differently • Increased capex guidance while • Increasing efficiencies to lower operating costs implementing efficient cost measures • Aligning businesses to changing customer
Slide 31: Zain
Ow) Zain
Slide 32: More Information
More Information For more information, please visit our website Investor Relations or contact us through: investor.relations@sa.zain.com +966 59 244 8888 Investor Relations app https://sa.zain.com/en/investors/share-statistics 33
Slide 33: Thank You
Thank You qrco.de/zain23q1 All rights reserved - © Zain KSA