Mobile Telecommunications Company Saudi Arabia · TADAWUL:7030
Mobile Telecommunications Company Saudi Arabia — Zain KSA — Q3 2023 Earnings Presentation
29 slides from Mobile Telecommunications Company Saudi Arabia's earnings presentation, November 2023
Slide 1: Welcome to Zain KSA Q3 2023 Earnings call
Welcome to Zain KSA Q3 2023 Earnings call SCAN ME
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% Founders 03 Saudi Plastic Factory Est. 2.93% 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 7,531 7,306 6,741 6,927 6,699 6,523 6,404 6,244 5,934 6,000 4,000 3,004 2,000 505 332 485 550 260 214 12 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (972) (980) (1,270) (2,
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 A renowned regional economic Mr. Matta was appointed the key role Mr. AlBawardi has more than 15 of Directors of Zain Group since November id
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: Eng. Sultan Bin Abdulaziz AlDeghaither, CEO
Eng. Sultan Bin Abdulaziz AlDeghaither CEO
Slide 11: First Zero-emission 5G network worldwide
First Zero-emission 5G network worldwide Zain & Red Sea Announcement Total reach Engagement +24M +2000K
Slide 12: Q3 2023 Financial Results
2.5 billion SAR ce million SAR Achievements Launch of the first zero-emission 5G network worldwide ‘A' rating on the MSCI ESG Index
Slide 13: Cityscape 2023 event
Cityscape 2023 event Zain KSA participated at the global-renowned Cityscape Global exhibition. This was hosted for the first time in the Kingdom from September 10 - 13 at the Riyadh International Convention & Exhibition Center.
Slide 14: Zain KSA Today
Zain KSA Today 8.9 Million 1,546 Zainers 258 Shops 40% Data Revenue 4,328 POS Customers Woman: 20 % (Excluding SMS & VAS) Local: 86% 9,952 Total number of sites 63 SAR 18,675 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 15: Tamam Q3
Tamam Q3 YTD Revenues YTD Net Profit Retained Earnings Loans book value 214.7 Million 45.1Million 45.3 Million 609 Million
Slide 16: Step Ahead Career fair
Step Ahead Career fair +23K CV’s Zain KSA believes in young talents and support them
Slide 17: Sustainability Rating
Sustainability Rating (A-) Score in the latest CDP Score Report Climate Change 2022 17
Slide 18: National Family Safety Program MoU
National Family Safety Program MoU Announced the signing of (MoU) with the Family Safety Program, solidifying our role as a strategic partner in the Saudi Child Helpline project. 18
Slide 19: Inclusion
Inclusion Launch WIT3 in partnership with MCIT Launch special discount offer on Purple & CST Saturday in partnership with APD +4K Applicant 18.5K Reach 1.6K Subscriptions 19
Slide 20: Aanaab and Code School Finland MoU
Aanaab and Code School Finland MoU In a global-local partnership to enable digital education and digital literacy, have recently signed an MoU Empowering and Localizing Digital Education 20
Slide 21: Financial Update
Financial Update Mehdi Khalfaoui CFO
Slide 22: Financial Highlights
Financial Highlights REVENUE [Million SAR] GROSS PROFIT [Million SAR] GROSS MARGIN % 69% 62% 60% 62% 59% 59% +15% +9% 0% 9,075 5,445 5,315 7,917 7,901 4,885 +10% +6% +8% (+239) (+133) 0% (+105) 2,287 2,392 2,525 1,376 1,484 1,481 2020 2021 2022 Q3 2022 Q2 2023 Q3 2023 2020 2021 2022 Q3 2022 Q2 2023
Slide 23: Financial Highlights
Financial Highlights OPERATIONAL INCOME) [Million SAR] Debts [Million SAR] Financing cost [Million SAR] 1,089 12.000 11.576 13% 13% 898 * 10.993 900 11.000 85 10.317 9.945 800 2.317 85 11% 11% 10.000 85 9.302 9.100 68 1,002 9% 12% 9.000 68 688 * 700 673 * 8.000 5.852 654 * 600 +34% +27% 7.000 3.836
Slide 24: Financial Highlights
Financial Highlights CASH BALANCE [Million SAR] CAPEX, CAPEX/ REVENUES [Million SAR] 1,103 37% -24% -54% 2,943 689 Capex - Gross Addition 512 Capex/Revenue 412 13% 375 314 10% -27% +50% 1,013 915 6% 3% 4% 127 62 93 2020 2021 2022 Q3 2022 Q2 2023 Q3 2023 2020 2021 2022 Q3 2022 Q2 2023 Q3 2023 EBITDA
Slide 25: 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 5,218 Government Loan (MoF) Ministry of F
Slide 26: 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 27: Q&A
O&A
Slide 28: More Information
More Information Investor Relations For more information, please visit our website or contact us through: investor.relations@sa.zain.com +966 59 244 8888 Investor Relations app https://sa.zain.com/en/investors/share-statistics 28
Slide 29: Thank You
Thank You SCAN ME All rights reserved - © Zain KSA