Kuwait Telecommunications Co. · KSE:STC
Kuwait Telecommunications — Kuwait Telecommunications Company K.S.C.P. (stc) — FY2020 Earnings Presentation
20 slides from Kuwait Telecommunications's earnings presentation, 2021
Slide 1: Investors Presentation FY-2020
Investors Presentation Kuwait Telecomunications Company K.S.C.P Kuwait Telecommunications Company K.S.C.P. FY- 2020
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 2020 Strategy 9 Market Share 10 Financial Results 11 Cash Dividends 15 Stock Performance 16 Appendix 18 Appendix 19 Page | 2
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
Slide 4: Key Milestones
Key Milestones stc Group was ranked 1s in the MENA region, by Forbe’s "Global Best Network 2000" list Development Award at 5G MENA Ranked 1st as a Leader Launches for Investor Relations stc launches Elite Partnership with Real stc Reap Three in Kuwait commercially Madrid Best Telecom
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
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
Slide 7: Population & Penetration
Population & Penetration Current Population Current Penetration 4.7 Million 166% Kuwait Population (Million) & Penetration Rate (%) 6.0 250% 205% 200% 5.0 194% 182% 176% 200% 172% 171% 166% 155% 152% 4.0 133% 150% 3.0 93% 57% 4.8 4.7 100% 4.4 4.5 4.6 2.0 4.1 4.2 3.6 3.7 3.8 3.9 3.4 3.5 50% 1.0 0.0 0
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
Slide 9: Our 2020 Strategy "AHEAD"
Our 2020 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
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 7.4 860 859 7.2 7.1 7.0 841 814 788 799 6.41 717 753 5.9 684 690 5.2 277 279 2
Slide 11: Financial Results
Financial Results Full Year ended 31 December 2020 stc’s revenue declined by 3.6% during the year ended 31 December 2020 to reach KD 283.2 mn Key Figures & Ratios FY-2019 FY-2020 Change as compared to KD 293.7 mn recorded in 2019. Subscribers (Mn) EBITDA recorded a decline of 12.4% to reach 2.0
Slide 12: Financial Results - Highlights Annual 2020
Financial Results - Highlights Annual 2020 Revenue (KD Million) EBITDA (KD Million) 293.7 EBITDA (KD Million) EBITDA Margin (%) 288 288 47% 47% 50% 140 283.2 120 40% 279 29% 100 25% 27% 26% 277 30% 80 131 131.9 60 20% 77.8 83.8 73.4 40 71.1 10% 20 0% 0 2015 2016 2017 2018 2019 2020 2015 2016 2017 20
Slide 13: Financial Results - Highlights Quarterly
Financial Results - Highlights Quarterly Revenue (KD Million) EBITDA (KD Million) 78.1 EBITDA (KD Million) EBITDA Margin (%) 76.1 74.2 72.9 72.2 72.6 66.6 64.2 35% 30% 30% 25 28% 28% 29% 27% 30% 24% 20 25% 21% 20% 15 15% 23.7 22.0 19.8 21.5 10 18.8 17.0 18.9 10% 15.5 5 5% 0% 0 Q1-19 Q2-19 Q3-19 Q4-1
Slide 14: Financial Results - Highlights
Financial Results - Highlights Total Assets (KD Million) Total Debt / Equity (KD Million) 391 Total Debt (KD Million) Debt to Equity Ratio (x) 374 0.80 0.90 80 305 273 0.70 70 263 267 0.40 60 0.50 50 0.30 0.10 0.10 0.00 0.05 40 0.10 72 30 -0.10 47 20 -0.30 20 10 0 10 -0.50 9 0 2015 2016 2017 2018 20
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
Slide 16: Stock Performance
Stock Performance Closing Price (KD) 0.852 PE (X) 13.31 Paid up Capital (KD Million) 49.9 PB (X) 1.91 Market Cap (KD Million) 425.5 Dividend Yield (%) 7.0% Data as of 31 December 2020 Rebased Index Since stc’s Listing Date 14 Dec 2014 – Stock Performance vs. KSE and Telecom weighted Indices STC's St
Slide 17: Appendix
Appendix Balance Sheet (2017 – December 2020) Income Statement (2017 – FY 2020) Page | 17
Slide 18: Balance Sheet (2017–2020)
Balance Sheet (2017–2020) Balance Sheet 2017 2018 2019 2020 KD Mn KD Mn KD Mn KD Mn ASSETS Property and equipment 145.0 150.5 193.5 190.4 Goodwill and Intangible assets - - 26.2 25.0 Total non-current assets 145.0 150.5 219.7 215.4 Inventories 12.9 6.9 9.1 9.3 Prepayments and other current assets 4.
Slide 19: Income Statement (2017–2020)
Income Statement (2017–2020) Income Statement 2017 2018 2019 2020 KD Mn KD Mn KD Mn KD Mn Revenue 287.7 287.9 293.7 283.2 Operating expenses (145.5) (139.3) (148.5) (147.4) Staff costs (20.4) (21.7) (24.6) (24.2) Expected credit losses on trade & other receivables and contract assets (14.2) (18.2) (
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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