Emirates Telecom. Group Company (etisalat Group) Pjsc · ADX:EAND
Emirates Telecom. Group Company (etisalat Group) Pjsc — Etisalat Group — Investor Day (February 2020)
164 slides from Emirates Telecom. Group Company (etisalat Group) Pjsc's investor day presentation, Feb 19, 2020
Slide 1: Etisalat Group Capital Markets Day 2020
Etisalat Group February 19st, 2020 Capital 2020 Markets Jumeirah Saadiyat, Abu Dhabi Day
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
Business Overview Saleh Al-Abdooli Chief Executive Officer Etisalat Group Etisalat Group Serkan Okandan Financial Results Chief Financial Officer Etisalat Group Etisalat Group Hatem Dowidar International Chief Executive Officer Etisalat International Agenda Etisalat Group Strategy Khalifa Alshamsi C
Slide 4: Business Overview
Business Overview Saleh Al-Abdooli Chief Executive Officer Etisalat Group
Slide 5: Our Group at a glance
1 Our Group at a glance… Mobile & Fixed Services 149 Subscribers UAE Pakistan Million KSA Mauritania 52,186 Revenue Morocco Mali Million Burkina Faso Gabon 26,370 EBITDA Million @ 34% Margin 2019 8,693 Net Profit Million @ 17% Margin 17,475 OFCF Million @ 33% Margin Egypt Cote d’Ivoire Mobile Servic
Slide 6: Highest EBITDA % and net profit % amongst peers
2 Etisalat Group enjoys the highest EBITDA % and one of the highest Net Profit % amongst peers, revenues are challenged predominantly by FX erosion in some markets Key performance indicators (Comparison on 3m basis) Revenue growth: LCY4 EBITDA Margin Net Profit Margin (Q3 2019/ Q3 2018, % YoY) (in %
Slide 7: 2019 was another positive year with many key achievements
3 2019 was another positive year for the Group, with many key achievements that successfully translated our strategy & plans Network Leadership Portfolio Related • Enhancing of 4G and 3G coverage in all OpCos • Launch of 5G in UAE market • Acquisition of Tigo Chad as • Commercial launch of 4G in Bur
Slide 8: 5G Commercial Launch in UAE
4 5G Commercial Launch in UAE stands out as a hallmark for Etisalat’s technological leadership and a key feat in 2019
Slide 9: Fastest mobile network in MENA per Ookla
Etisalat was recognized by Ookla® as the fastest Mobile 5 network in MENA, and the fastest Fixed broadband network in the Middle East, Africa & Arabian region
Slide 10: Global leaders in fixed fiber penetration
6 We are the global leaders when it comes to fixed fiber network penetration for the 3rd consecutive year, hence enabling larger capacities, faster speeds, and diverse portfolio Global Ranking – Household penetration 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 95.7% UAE 94.5 Qa
Slide 11: Most valuable consumer brand in MEA
7 Etisalat is the most valuable consumer brand in MEA for the 3rd consecutive year Source: Brand Finance Global 500, 2020
Slide 12: Macro-economic environment across the footprint
8 The Macro-economic Environment Across the Footprint Offers both Opportunities to Exploit and Challenges to Mitigate Key Macro-Economic Drivers Highlights Economic outlook across our • Overall population growth of ~2% across the footprint, footprint is cautiously optimistic, mainly in tech-savvy yo
Slide 13: Topics expected to evolve in the coming period
9 Several topics are expected to strongly evolve in the coming period, with varying implications on our industry & ecosystem Next Generation Hyper Autonomous Practical Connectivity Automation Everything Blockchain • 5G fueling intelligent • Expansion of automation • Expansion of • Expansion of use c
Slide 14: Next Generation Connectivity
Next Generation Connectivity Mobile Subscriptions by Technology 1G 2G 3G 4G 5G Cellular IoT connections 14 Billions • 2020 will continue to witness accelerated 5G deployments across the 12 globe, bringing faster data speeds and 10 more reliable networks for Consumer & B2B devices, e.g. smart phones,
Slide 15: Content & Multi-experiences
Content & Multi- experiences Mobile Data Traffic by Application • By 2025, data monthly consumption will grow over 4 folds from 2019, with video accounting for than 76% of all mobile traffic. • Content consumption will change with the proliferation of immersive experience formats such as AR and 4K/8
Slide 16: Practical Blockchain
Practical Blockchain The Gartner Blockchain Spectrum (Emerged in 2008) • An expansion in use cases beyond Crypto-currencies and payments is expected. • Microsoft, Amazon, Samsung, IBM and many other vendors are democratizing Blockchain, with simplified ecosystem and BaaS (Blockchain as a Service) cl
Slide 17: Autonomous Everything
Autonomous Everything • Expansion of autonomous use cases: cars, taxis, drones, trucks and utility vehicles • Maturing ecosystem, i.e. infrastructure and regulations • Powered by Edge and Cloud computing • Volumes of Autonomous Cars in specific will surpass 51,000 units in 2021 when personally owned
Slide 18: TARGET digital strategy key priorities
14 Moving forward, we will continue to push the implementation of our Group digital strategy “TARGET” across key priorities T To Drive the Digital Future to Empower Societies Growth- A Accelerate value generation through innovation & digitization Focused Strategic Priorities R OpCo Specific Raise ca
Slide 19: UAE NEXT guiding compass
15 For UAE, “NEXT” remains our guiding compass, which involves pursuing several other mission-critical focus areas Non-exhaustive 5G Roll-out Digital Growth & Network Modernization Supporting National Agenda Efficiency Digitalization Accelerating Analytics, AI, and Automation tracks (AAA)
Slide 20: Determined to lead as a digital telco
16 Overall, Etisalat Group is determined to lead as a digital telco with enhanced efficiency, improved digitization and digital revenues as the key sustainable drivers for growth We are progressing steadily in delivering against our strategy, strategic objectives, and shareholders expectations.
Slide 21: Etisalat Group Financial Results
Etisalat Group Financial Results Serkan Okandan Chief Financial Officer Etisalat Group
Slide 22: Etisalat Group Financial Highlights
18 Etisalat Group Financial Highlights AED Million Q4 2019 Growth FY 2019 Growth Growth YoY% YoY% Constant Exchange YoY% Rates Revenue 13,341 +2% 52,186 0% +1% EBITDA 6,277 +1% 26,370 +2% +3% EBITDA Margin 47% -1pp 51% +1pp +1pp Net Profit 1,963 -3% 8,693 +1% Net Profit Margin 15% -1pp 17% 0pp Capex
Slide 23: Revenue and EBITDA Breakdown FY 2019
19 Etisalat Group Financial Highlights Revenue Breakdown FY 2019 (AED m) EBITDA Breakdown FY 2019 (AED m) 52.2 26.4 Bn Bn Y0Y Growth 0% Y0Y Growth +2%
Slide 24: Int'l Operations Financial Highlights FY 2019
20 Int’l Operations Financial Highlights FY 2019 Revenue (AED m) / EBITDA (AED m) / Revenue & EBITDA (AED m) / EBITDA Margin (%) / EBITDA Margin (%) YoY Growth % MT Group FY 2019 Growth Growth in AED in MAD Revenue 13,221 -1% +1% EBITDA 7,214 +3% +6% EBITDA Margin 55% +2pp +2pp Egypt FY 2019 Growth
Slide 25: Group Revenue
21 Group Revenue Revenue (AED m) & YoY Growth (%) Sources of Revenue Growth – FY 2019 vs FY 2018 (AED m) 60,000 30% 52,388 85 624 52,186 52,388 52,186 50,000 25% 169 70 671 40,000 20% 15% 30,000 10% 20,000 4% 13,341 5% 13,034 12,977 1% 5% -3% 0% 10,000 -3% -1% 0% 2% 0 -5% Q4'18 Q3'19 Q4'19 FY'18 FY'
Slide 26: Group EBITDA
22 Group EBITDA EBITDA (AED m) & YoY Growth (%) Sources of EBITDA Growth – FY 2019 vs FY 2018 (AED 217 233 192 90 25,880 26,370 25,880 26,370 242 52% 49% 51% 48% 47% 6,222 6,754 4% 6,277 5% -3% Q4'18 Q3'19 Q4'19 FY'18 FY'19 FY'18 UAE MT Group Egypt Pakistan Others FY'19 Constant Cu -1% +1% +3% +2% +
Slide 27: Group Capex
23 Group Capex Capex (AED m) & Capex/ Revenue Ratio (%) Sources of Capex Growth – FY 2019 vs FY 2018 (AED 662 10,000 8,895 40% 82 8,379 8,895 30% 35% 8,379 8,000 26% 0 161 30% 67 6,000 25% 16% 17% 14% 4,014 4% 5% 20% 4,000 3,363 -3% 15% 1,853 10% 2,000 5% 0 0% Q4'18 Q3'19 Q4'19 FY'18 FY'19 FY'18 UAE
Slide 28: Group Balance Sheet & Cash Flows
24 Group Balance Sheet & Cash Flows Balance Sheet (AED m) Dec-18 Dec-19 Investment Grade Credit Ratings Cash & bank Balances 28,361 29,657 Total Assets 125,243 128,266 AA-/Stable Total Debt 23,526 23,889 Net Cash / (Debt) 4,835 5,768 Total Equity 57,245 57,767 Aa3/Stable Cash Flow (AED m) Dec-18 Dec
Slide 29: Debt Profile: Diversified Debt Portfolio
25 Debt Profile: Diversified Debt Portfolio Borrowings by Operation Q4 2019 (AED m) Borrowings by Currency Q4 2019 (%) 14,260 6,607 1,813 1,209 Group MT Group Pakistan Egypt Debt by Source Q4 2019 (AED m) Repayment Schedule Q4 2019 (AED m) 6,524 6,303 11,607 5,848 11,309 5,214 424 548 Bonds Bank Bor
Slide 30: Group Dividends: Proposed DPS of AED 80 Fils
26 Group Dividends: Proposed DPS of AED 80 Fils for FY 2019 Cash Dividends (AED m) Dividends Per Share (AED) 6,954 6,954 6,954 0.8 0.8 0.8 3,477 3,477 3,477 3,477 3,477 3,477 2017 2018 2019 2017 2018 2019 Interim Final Dividend Yield (1) (%) Dividend Payout Ratio (%) 5.0% 82.7% 80.7% 80.0% 4.8% 4.5%
Slide 31: Country by Country Financial Review
COUNTRY BY COUNTRY FINANCIAL REVIEW
Slide 32: UAE: Maintaining Profitability Margins
28 UAE: Maintaining Profitability Margins While Investing in New Technologies Revenue (AED m) / YoY Growth (%) EBITDA (AED m) / EBITDA Margin (%) Net Profit (AED m) / Profit Margin (%) CAPEX (AED m) & CAPEX / Revenue Ratio (%)
Slide 33: UAE: Revenue Breakdown and Key KPIs
29 UAE: Revenue Breakdown and Key KPI’s Mobile Revenues(1) (AED m) Fixed Revenues(2) (AED m) Other Revenues(3) (AED m) 12,654 11,252 11,315 12,307 7,475 7,844 3% 5% 5% 3,156 3,069 3,091 2,844 2,772 2,854 1% 1,907 1,866 2,110 -4% -3% -5% 4% 11% -2% -6% 3% -3% -2% 0% Q4'18 Q3'19 Q4'19 FY'18 FY'19 Q4'1
Slide 34: Maroc Telecom: Expanding International Footprint
30 Maroc Telecom: Expanding International Footprint Morocco, Benin, Burkina Faso, CAR, CDI, Chad, Gabon, Mali, Mauritania, Niger & Togo Subscribers (m) Revenue (AED m) / EBITDA Margin (%) CAPEX (AED m) & CAPEX/Revenue Ratio (%) 2,589 2,589 13,390 13,221 2,500 2,000 52% 56% 52% 52% 55% 25% 23% 1,500
Slide 35: Egypt: Strong revenue growth and profitability
31 Egypt: Strong revenue growth and profitability Subscribers (m) Revenue (AED m) / EBITDA Margin (%) CAPEX (AED m) & CAPEX/Revenue Ratio (%) 3,430 763 681 2,806 38% 45% 47% 41% 39% 27% 24% 32% 22% 277 18% 941 250 910 167 731 Q4'18 Q3'19 Q4'19 FY'18 FY'19 Q4'18 Q3'19 Q4'19 FY'18 FY'19 Y/Y % Growth (
Slide 36: Pakistan: Maintained subscriber and revenue growth
32 Pakistan: Maintained subscriber growth and revenue growth in local currency Subscribers (m) Revenue (AED m) / EBITDA Margin (%) CAPEX (AED m) & CAPEX/Revenue Ratio (%) 3,849 1,142 4,000 3,178 61% 981 3,500 3,000 48% 2,500 41% 31% 30% 33% 32% 552 2,000 27% 30% 31% 1,500 361 903 302 1,000 732 746 5
Slide 37: 2019 Actual vs Guidance
33 2019 Actual Guidance: Met most of 2019 guidance Financial Original Guidance Revised Guidance Actual KPI 2019 in AED 2019 in AED 2019 in AED Revenue Growth % Slightly lower Around -1.0% -0.4% EBITDA Margin% 48% - 49% 50% - 51% 50.5% EPS (AED) 0.99 – 1.02 1.00 – 1.02 1.00 CAPEX / Revenue % 18% - 19
Slide 38: 2020 Guidance: Investing in the future
34 2020 Guidance: Investing in the future Financial Actual Guidance KPI 2019 in AED 2020 in AED Revenue Growth % -0.4% Around -1% EBITDA Margin% 50.5% 48% - 49% EPS (1) (AED) 1.00 1.00 - 1.02 CAPEX / Revenue % 17.0% 18% - 19% (1) EPS guidance excludes the impact of a potential share buyback
Slide 39: Etisalat Group International
Etisalat Group International Hatem Dowidar Chief Executive Officer Etisalat International
Slide 40: International portfolio of 15 countries
35 International portfolio of 15 countries ….Etisalat is #1 or #2 in value share in most of the portfolio markets Etisalat International Value shares After the acquisition of #1 #2 #3 Tigo Chad, Etisalat Int’l Portfolio has presence in 15 countries (outside Afghanistan UAE); 14 markets Morocco Egy
Slide 41: Etisalat Int'l larger than many MENA telecom groups
36 On its own, from a revenue perspective, Etisalat Int’l (aggregated) is already larger than many key Telecom Groups in MENA Leading (>12bn USD revenues) Strong International (8 to 12bn USD aggregated1 revenues) Challengers (<8bn USD revenues) Note 1: Including Mobily (KSA), which is an associate a
Slide 42: Int'l contribution to Group above 50%
37 At aggregated level, contribution of Int’l portfolio to Etisalat Group is steadily above 50% despite FX devaluation and exiting subscale markets Etisalat International revenues contribution (%) Aggregated 1) Key divestments: Zantel (2015), Canar (2016), Consolidated Nigeria (2017), ESL (2018) • S
Slide 43: Etisalat Int'l key contributor to Group growth
38 Etisalat Int’l continue to deliver strong performance and is a key contributor for Etisalat Group profitable growth Revenues (AED bn) EBITDA (AED bn, %) OFCF Proxy (AED bn, %) +4% +4% 33.6 32.3 31.1 +11% +4% Etisalat 14.6 International 14.0 +21% +10% 12.6 aggregated 7.4 6.7 perspective1 5.6 43% 4
Slide 44: 2019 achievements across international markets
39 Double digit growth for challengers in KSA and Egypt, incumbents in Morocco and Pakistan defending market leadership but hit by one offs 2019 ACHIEVEMENTS Leadership position Profitable challenger Revenues: 15.7 bn EGP (+15% YoY) Revenues: 36.5 bn MAD (+1% YoY) EBITDA: 6.2 bn EGP (+10% YoY), 40%
Slide 45: Maroc Telecom growth story driven by data
40 Maroc Telecom growth story driven by appetite for Data in Morocco and West Africa subsidiaries Revenues YoY evolution Morocco MT Group 4.6% 3.0% 1.3% 1.3% -0.8% -3.6% 2017 2018 2019 • Strong bet on 4G spectrum and • Expansion of the 4G network • Moroccan operations continue fixed Network enhancem
Slide 46: Mobily turnaround completed
41 Mobily turnaround completed and now unlocking growth opportunity in Saudi market Revenue growth QoQ 15.1% 14.4% 13.0% Revenue growth YoY 11.1% 4.1% 3.2% 1.1% 2.2% -16.7% EBITDA 33% 32% 32% 32% 37% 37% 37% 42% 40% 37% 38% 33% Margin Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19
Slide 47: Etisalat Misr strong growth while investing
42 Etisalat Misr is maintaining strong growth while investing in network infrastructure Revenues evolution – USD Million Revenues Net Profit 1,108 942 771 683 60 79 110 -19 EGP devaluation 4th mobile Strong appetite for player Data, especially Mobile Internet Hyperinflation 2016 2017 2018 2019 Sourc
Slide 48: PTCL Group stabilizing fixed, gaining mobile momentum
43 In Pakistan, PTCL Group is stabilizing fixed business while gaining momentum in mobile • Investment in Fixed Network • Ufone continued its acquisition drive to transformation delivering value cross 23m subs and edging up its market • Strong growth in Business segment share • Launch of LTE service
Slide 49: Strong discipline in portfolio development
44 Strong discipline in portfolio development 1 Consolidation • Continue optimizing footprint via in-market consolidation, acquisition of & licenses and spectrum and bolt-on acquisitions Divestments • Divestments now largely completed and not a focus area 2 Opportunistic • Screen potential opportuni
Slide 50: Way forward
45 Way forward Continue stronghold strategy reinforcing position in our key markets Leverage on new services (for example digital, mobile financial services) to create additional streams to complement core revenues Explore growth through inorganic acquisitions which meet our investment criteri
Slide 51: Etisalat Group Strategy
Etisalat Group Strategy Khalifa Alshamsi Chief Corporate Strategy & Governance Officer Etisalat Group
Slide 52: Our Vision: Drive the Digital Future
47 Our Vision – “Drive the Digital Future to Empower Societies” Which involves a progressive evolution into a portfolio of Digital Telcos CORE DIGITAL P&S Lifestyle and P&S Strong Portfolio Business of B2B & B2C Bundles Digital P&S NETWORK & CUSTOMER IT EXPERIENCE Simple, Modern & Digital Personaliz
Slide 53: Strategic summary
48 Strategic summary Etisalat Group Strategic Synopsis: Focus on strategic priorities to 1 continually transform OpCos into “Strongholds” Etisalat UAE Strategic Synopsis: Defend the Core, Grow Digital and 2 Transform into an Agile, Digital and Efficient Organization Source: Etisalat Corporate Strate
Slide 54: Macro-economic environment across the footprint
49 The Macro-economic environment across the Footprint offers both opportunities to exploit and challenges to mitigate Saudi 2020 Real GDP growth Global Arabia across the footprint is The population across our Economic cautiously optimistic with a footprint is expected to grow Snapshot: range of 2.2
Slide 55: Key Telco/ICT drivers across the footprint
50 Key Telco/ICT drivers across the Etisalat Group footprint Driven by increasing demand of high quality content, gaming, smartphone Huge demand for penetration, increasing penetration of social media apps and digital online high speed data solutions Core Challenging • Such as setting New Policies a
Slide 56: TARGET Strategy
51 We continue our focused execution of the Etisalat Group, TARGET Strategy… Etisalat Group Strategy: TARGET T To Drive the Digital Future to Empower Societies A Accelerate value generation through innovation and digitization R Raise capabilities and develop talent across the Group G Grow B2B/Digita
Slide 57: Strategic priorities focused on Growth and Efficiency
52 …with our current strategic priorities focused on Growth and Efficiency Mobily Digital Transformation PTCL Customer Network Modernization: Experience Management Mobily, PTCL & Ufone Program PTCL-Ufone Synergies OpCo Specific MT Group: West Africa Submarine Cable Launch Commercial Proposition Mobi
Slide 58: UAE macro outlook and Expo 2020
53 In UAE, the Macro-Economic outlook remains modest and Expo 2020 is expected to provide a boost UAE Leadership has set a digitally fueled Vision and has introduced multiple initiatives to ensure Vision realization Pressure on UAE Oil Sector: Uncertain economic conditions ultimately weaker global d
Slide 59: Five market drivers shaping UAE Telco/ICT landscape
54 We observe five major market drivers that are shaping the future UAE Telco/ICT landscape Voice under pressure, evolving regulatory environment and increasing OTT substitution Continued price-based competition and increased open competition in ICT/Digital Sector driving pressure on growth and marg
Slide 60: Etisalat UAE NEXT Strategy pillars
55 Etisalat UAE response – 2020+ Strategic Pillars of our NEXT Strategy… 1 3 Transform into an Agile, Digital and Efficient Organization Nurture and Defend Core Business Network & IT Customer Experience 2 Processes & Ways of Working Enhance and Grow Digital Lines & Place Bets in (X-Step) Selected Ad
Slide 61: Portfolio of strategic priorities
56 …executed via a portfolio of strategic priorities… 1 2 3 Enhance and Grow Transform into an Agile, Nurture and Defend Digital Lines & Place Bets Digital and Efficient Core Business in (X-Step) Adjacencies Organization Expand Etisalat Digital (IOT, Cloud, Create a programmable, secure Maximize gro
Slide 62: Sustained technology leadership
57 ….powered by sustained technology leadership Leading Portfolio of First in Region to Digital/ICT Launch 5G Platforms Continued Scaling up FTTX1) & 4G Big Data, AI and Global RPA Deployed Leadership Use Cases Tech Modular IT Evolution Fastest Architecture Mobile and based on Broadband Micro-servic
Slide 63: Digitizing all aspects of our network
58 Of note, going forward, we are in the process of digitizing all aspects of our network… Future of Networks Programmable, ‘Softwarized’ and Fully Virtualized DWDM , GPON & Network 5G roll-out (enhanced Edge Computing 5G roll-out Mobile Broadband) (URLLC and Massive Telco Cloud (for Target Expansio
Slide 64: Transitioning to digital centric operations model
59 …while transitioning to a fully digital centric operations model e.g. Data Scientists, AI e.g. Innovation, MVP, SCRUM, Specialists, RPA, 5G Digital Up-skilling Agile Software Cross-functional Team working & CoEs Factory Digital-Centric Operations AAA (Analytics- Digital Platform e.g. Widespread B
Slide 65: Overall summary
60 Overall summary… We remain committed to our Vision – “Drive the Digital Future to Empower Societies”, which targets the progressive transformation of our portfolio into Digital-Telcos We continue the execution of our “TARGET” Strategy at Group level with priorities focused on driving both growth
Slide 66: Thank You / Q&A
Q&A Thank You
Slide 67: Etisalat UAE Consumer
Etisalat UAE Consumer Khaled ElKouly Chief Consumer Officer Etisalat UAE
Slide 68: Mobile postpaid driving growth
63 In the mobile segment, postpaid continued to be the driver of growth allowing us to lock-in a larger share of revenues Performance of Mobile services Mobile Postpaid base Performance Highlights (thousand of subs) Despite the less favorable macroeconomic +8% context, postpaid subs continued to g
Slide 69: Home segment subscriber and ARPU growth
64 In the home segment, we continued to register solid growth in terms of subscribers and enhance customers’ ARPU Performance of Fixed services Consumer eLife base Performance Highlights (thousand of subs) Continued to register a solid growth in terms of both subscribers and ARPU, driven by an +2%
Slide 70: Region's fastest mobile and broadband network
65 In addition, Etisalat was officially recognized as having the region’s fastest mobile and broadband network and… Fastest mobile and broadband network in the region Source: Ookla benchmarks
Slide 71: Most valuable consumer brand in MENA
66 …as the most valuable consumer brand in MENA for the 3rd consecutive year Most Valuable Consumer Brand in MENA in 2020 Source: Brand Finance Global 500, 2020
Slide 72: Innovative mobile propositions
67 On Mobile, we developed innovative propositions designed around the evolving needs of our segments Commercial Highlights – Freedom Unlimited and Wasel Go Positioning of Consumer UAE mobile propositions Emirati White Single Blue Youth Visitors Collars Professionals Collars Emirati Visitor Freedom
Slide 73: Freedom Unlimited launch
68 We launched “Freedom Unlimited” offering for the first time in the UAE, unlimited local and international calling on select plans and… Commercial Highlights – Freedom Unlimited Source: Etisalat Consumer
Slide 74: Roam Like Home
69 …introduced “Roam Like Home”, enabling Freedom users to enjoy a seamless roaming experience by using their local allowances while travelling abroad Commercial Highlights – Roam Like Home Source: Etisalat Consumer
Slide 75: Other launches and promotions
70 In line with our customer-centric approach, we also reinforced and launched various other propositions and promotions to complement our portfolio Commercial Highlights – Other Launches & Promotions Non-exhaustive Non-exhaustive Data IDD Non Stop Data Super data blocks International voice calling
Slide 76: eLife higher internet speeds
71 On eLife, we provided higher internet speeds to significantly more HHs, in line with UAE’s vision to reach a top position in terms of speeds and… Commercial Highlights - eLife Unlimited % with speeds >25 Mbps (% of customers) National speed 68.0% upgrades for eLife, increasing the entry- level sp
Slide 77: eLife Cloud Gaming and Home Protection
72 …kept expanding our portfolio to adjacent home services, aiming to tap into major customer lifestyle trends Commercial Highlights – eLife Cloud Gaming and Home Protection eLife TV Gaming Home Protection Source: Etisalat Consumer
Slide 78: 5G-enabled devices and Upgrade Anytime
73 On Devices, we launched the region's first 5G-enabled device and introduced 'Upgrade Anytime', as we continued to expand our portfolio Commercial Highlights – Reinforcement of Etisalat’s position as operator of choice 5G-enabled devices Upgrade Anytime Portfolio expansion Non-exhaustive Non-exhau
Slide 79: eWallet digital payment service
74 Beyond the core, we introduced eWallet, a new digital payment service regulated and licensed by the Central Bank of UAE Commercial Highlights – eWallet Mega Sales & Promotions with eWallet Etisalat established a joint venture with Noor bank, to offer e-wallet services, a new digital payment servi
Slide 80: Smiles users and new credit card
75 Also, opened up Smiles for everyone in UAE and launched a new credit card in partnership with CBD, which contributed to strong growth in users, getting us close to the mark of 2 million Commercial Highlights – Smiles Registered Smiles unique users (in ‘000s) +30% 1,981 1,522 Dec’18 Dec’19 Source:
Slide 81: Digital channel adoption
76 In the digital front, the adoption of our digital touch points continued at great speeds and reflected on their contribution to total sales & recharges Operational Highlights – Digital Channels Monthly Active users Recharges via Digital channels (30 days active) (through website/ mobile app) Mobi
Slide 82: Customer Care efficiencies
77 In Customer Care, the enhancements in our products and complaint handling processes combined with our automation efforts, led to significant operational efficiencies Operational Highlights – Customer Care Call volumes Registered Complaints (handled by 101 agents) (monthly average in thousands) -3
Slide 83: Permanent kiosks roll-out
78 In Sales, as a response to the TRA’s new guidelines, we implemented an aggressive roll-out plan of over 250 permanent kiosks to mitigate the impact on sales operations Operational Highlights – Sales Opening up of permanent kiosks across UAE Inside supermarket & labor camps Inside community center
Slide 84: Retail cost efficiencies and satisfaction
79 …and continued to focus on driving cost efficiencies in Retail, while maintaining our excellent customer satisfaction ratings Operational Highlights – Retail Waiting Time Retail Satisfaction (monthly average) (top-2-boxes) +29% >90% >90% 2018 2019 2018 2019 Source: Etisalat Consumer
Slide 85: TRI*M customer score
80 Finally, all our efforts on multiple fronts further strengthened the relationship with our customers, as reflected in the TRI*M score Operational Highlights – TRI*M TRI*M score (index, average of period) +9 index points 2018 2019 Source: Etisalat Consumer
Slide 86: Thank You / Q&A
Q&A Thank You
Slide 87: Etisalat UAE Business
Etisalat UAE Business Salvador Anglada Chief Business Officer Etisalat UAE
Slide 88: Business segment context and market pressure
83 Business segment context is defined by a high pressure on core services due to market saturation, Etisalat’s high market share and high average prices UAE Economy Technology GDP projections * SMBs Evolution (‘000) ** Technology 3,3% Fixed-Mobile substitution VoIP 2,8% -5% 2.5% 1,4% 1.7% 1.6% 223
Slide 89: Updated vision and strategy for digital player
84 In 2018 we updated our vision and strategy to evolve our business to become a relevant digital player in the market Source: Etisalat Business
Slide 90: Growing with digital services and customer experience
85 While transforming our business, we have been able to grow leveraging on digital services and enhancing customer experience 2018 2019 2020 Mobile Mobile Control Platform Excellence in Mobile Unlimited Voice Managed E2E managed services Network Virtualization Extended E2E Network Cloud Solutions S
Slide 91: Mobile: defending market share
86 In Mobile, we have defended our market share building platforms to create customer stickiness and minimize price erosion Portfolio Evolution: transit Platforms to maximize Flexibility & Price Control towards data tariffs loyalty Mobile Hub Pricing Office 2016 Full control Company Online Split bil
Slide 92: SMB bundling and Business Edge
In SMB, we have protected our revenues by bundling our 87 connectivity with additional services and creating an e2e cloud digital offering Offer Evolution Business Edge Retail Clinics IT Companies Business VERTICAL SOLUTIONS Edge BQS with SaaS Platform – 100+ Internet Managed Applications Bundle BQS
Slide 93: Evolving to E2E managed services
88 We continued evolving from managed connectivity to E2E managed services E2E Managed Services Performance Managed WiFi Managed Voice Security Total No. of Links Revenue (‘000) (AED - Bn) From Premises to Cloud +5% +3% 2015 2019 2015 2019 Managed Links over total Managed Service Revenues (%) over T
Slide 94: Etisalat Digital engine of growth
89 Etisalat Digital has continued to be our engine of growth supporting our customers in their digital transformation journey Best Digital Experts Advanced Digital Platforms Agile Service Models +400 Expert 25 Nationalities 13 Data Centers 24/7 Operations 70% 30% Engineering Business / Operations E1
Slide 95: E2E value proposition across business lines
90 We have built an e2e value proposition with a balanced contribution from the different business line 23% 21% 17% 21% 18% Source: Etisalat Business
Slide 96: Expo site readiness
91 In Expo we continue building the fastest, smartest and most connected site on earth Site Readiness Complete value proposition for Pavilions Infrastructure • Two on site pops • 600KM+ Telecom Fiber 80% • Mobile Deployment 52% Cloud Brand Activations & Sponsorships Campaigns • Multicloud AWS/E1C •
Slide 97: Hassantuk smart fire alarm project
92 We have continued to deliver Hassantuk project, our smart fire alarm system across the UAE having installed more than 10K villas so far Smart Fire Alarm System for 7 emirates +10k Villas +6k Villas 2018-YTD 2019 20,000 Villa 5,026 6,406 Installations 1,380 Evolution H1 - 18 H2 - 18 2019 2020B Val
Slide 98: AI Video Cloud Platform and Oyoon project
93 In 2019 we built our AI Video Cloud Platform and we were awarded by Dubai Police to deliver Dubai Safe City project (Oyoon) Model for Modern Safe City Oyoon Project Video Cloud Platform > 10,000 Cameras Abandoned Overcrowds Driving Wrong Way B&W Listing EVC PLATFORM Objects Behavior Analytics & F
Slide 99: First smart district reference at JLT
94 We have also secured our first smart district reference at JLT Scope District Unified Key facts Water Quality Smart Parking Command & Monitoring System • 5 Smart Buildings with Control Center +20,000 connectivity points Community Environmental Smart Lighting • 1,000 car slots under Portal Monitor
Slide 100: Acquisition of Help AG
95 This year, we have executed our first inorganic move with the acquisition of Help AG, a trusted security specialist company Help AG +100 Employees Portfolio Help Strategic System Network Managed Cyber OT Technical AG/ED Consulting Integration Security Security Security Security Support Value Chai
Slide 101: International expansion in KSA and UAE Trade Connect
96 We are investing in new sources of growth with the international expansion in KSA and launching UAE Trade connect Etisalat Digital KSA Office establishment Blockchain JV with 8 Banks and operational launch in Q2 8 Banks joined the UAE Trade Connect (UTC) platform in efforts to digitize trade in t
Slide 102: #FutureNow innovation program
97 Through our #FutureNow program we have continued fostering innovation and we will be opening a second hub in Abu Dhabi Co- Creation #FutureNow IoT Partnership Open Innovation Lab Calls Program Center Q2 2020 AbuAUH Dhabi April 2020 cv cv cv cv • 31 Design Thinking • 20 IoT Companies • +650 Visits
Slide 103: Internal digital transformation around 6 pillars
98 We are executing our internal digital transformation around 6 pillars with the objective to become a digital division by 2021 1 2 3 We are transforming expanding to digital & making our digital our offering channels channels the preferred option for our customers 4 5 6 We are also automating putt
Slide 104: Conclusions and Way Forward
99 Conclusions and Way Forward 1 We are progressing in our transformation journey to become a digital telco 2 We continue protecting our core services by adding value with new digital and managed services while delivering superior customer experience 3 We are launching “Business Edge” as the best in
Slide 105: Thank You / Q&A
Q&A Thank You
Slide 106: Etisalat Misr
Etisalat Misr Hazem Metwally Chief Executive Officer Etisalat Misr
Slide 107: EM 2019 Performance
EM 2019 PERFORMANCE 102 Progressing steadily towards higher shareholders expectations by enhancing company value drivers 2019 2019 2019 2019 2019 16 % 24 % 50 % 74% 17% CONSUMER EBU MOBILE MOBILE ARPU GROWTH GROWTH INTERNET INTERNET GROWTH REVENUE TRAFFIC GROWTH GROWTH 2019 2019 2019 33 % INTERCONNE
Slide 108: Favorable country outlook for Egypt
COUNTRY OVERVIEW 103 Favorable country outlook highlighted by macroeconomic stabilization after years of critical reforms Positive macroeconomic outlook despite manageable challenges NETWORK GROWTH MOMENTUM OUTLOOK IMF 2024 INVESTMENTS Egypt Is #1 in Population among Arab countries (~51%<24 years)
Slide 109: Egyptian Telecom industry landscape
INDUSTRY OVERVIEW 104 Egyptian Telecom industry landscape continues to offer promise and opportunity while posing challenges & risks to be managed Market Attractiveness STC signed an MOU to acquire Vodafone’s stake in Vodafone Egypt which reaffirms investors’ confidence in the Egyptian market Mobile
Slide 110: Competition Landscape
COMPETITION LANDSCAPE 105 Over the past four years Etisalat Misr claimed & reinforced its market position by outpacing market growth Value EBITDA Share Margin orange vodafone WE 15 % 8% 14.5 % ~EGP1.5 bn REVENUE REVENUE REVENUE MOBILE GROWTH GROWTH 1 GROWTH REVENUE 1 2018 27.6% 41% 26.1% 29% 44.4% 4
Slide 111: External environment effectively managed
EM REGULATORY ENVIRONMENT 106 External environment effectively managed with favorable outcomes Settlement of Interconnect Legal Disputes Gated community license Ending of interconnection tariff Comprehensive Telecom Offering disputes Settlement effectuated a settled interconnection License allowed E
Slide 112: EM Commercial Performance
EM COMMERCIAL PERFORMANCE 107 Maintained our strong performance in consumer and enterprise segments while leading the way to digital transformation Enablers Performance Mass High Youth Young 16% Value Professionals Consumer Economic Increasing uptake of well positioned CONSUMER segmented REVENUE mar
Slide 113: EM Digital Performance
EM DIGITAL PERFORMANCE 108 EM’s Digital Transformation Technology Tracks Enablers Performance Digital Touch Digital Digital Rich points purchases CVM content My Etisalat App M-commerce & I-Pipe & RTIM Sports, Music & Web dashboard e-shop Games Customer Experience I-pipe self care Economi
Slide 114: EM Network Capability
EM NETWORK CAPABILITY 109 4G Network Offering Superior Customer Experience 4G Continuity , 2019, % Network (4G usage % on 4G handsets) Performance 75% 72.7% 71.7% Total sites in 2019 72% 70.1% 2019 2019 > 7,500 sites 69% 67.0% 67.9% 12,741 18.2 mbps Total expansions 66% 65.0% 3G/4G 4G of 3G/4G r
Slide 115: EM 2020 & Beyond: The Way Forward
EM 2020 & BEYOND 110 The Way Forward ENVIRONMENT DIGITIZATION Management focus on Expanding on digital self allocating efforts and service and digital core appropriate resources to propositions & optimizing cost manage & interact Utilizing digital assets to effectively with external actively pla
Slide 116: Thank You / Q&A
Q&A Thank You
Slide 117: Mobily
Mobily Salman Bin Abdulaziz Al Badran Chief Executive Officer Mobily
Slide 118: 2019 Key achievements
Major Highlights | 2019 Key achievements SEC awarded smart meter project to a consortium of Etihad Etisalat Co. (Mobily) and Al- Fanar Construction for the central and eastern parts of the Kingdom, The project will start on Dec. 19 and is expected to be completed by March 30, 2023 Mobily success
Slide 119: A year of successes
Major Highlights | A year of successes “Empower the Digital Economy to Unlock Possibilities” • Strong achievement in our financials KPI’s : o The highest annual revenue growth in the last 4 years. o The highest EBITDA level in the last 6 years. o The First annual net profit in the past 5 years. Perf
Slide 120: Macro Environment general overview
Macro Environment | General overview Total mobile subscriptions in Saudi Arabia reached 41.63 MN, with a voice penetration rate of 124.6% Overall mobile download speed improved by 15.1% to 41.2 Mbps, versus Q2 2019* Mobily recorded the lowest number of complaints for voice, data and fixed line
Slide 121: Regulatory measures implemented
Telecom Overview | Regulatory measures implemented Obligation to pay for Comprehensive Internet filtering Adj. down of settlement Award of FTTH subsidy under National system regulated agreement have Broadband Fund to selected market players international been signed with Dependency Fees prices floor
Slide 122: KSA economy is a key global player
KSA Market | KSA economy is a key global player GDP 2019* (nominal) KSA GDP Growth** +1 18th SA 762 BN USD +0.4% +2.0% 29th AE 428 40th EG 299 42st PK 278 58th MA 121 2018a 2019a 2020p KSA Telecom Market • Founded 1998 • Founded 2004 • Founded 2008 • Incumbent full service telecom • 2nd mobile servi
Slide 123: Saudi market opportunities in government and B2B
KSA Market | Saudi market presents many opportunities related to government and B2B Vibrant Society Thriving Economy Ambitious Nation Privatization Public Investment Fund Tourism Education (i.e. Aramco IPO etc.) (i.e. Hub for KSA (i.e. Umrah & Hajj pilgrims etc.) (i.e. Revamp of the system to invest
Slide 124: 4G rollout continues, speed increased
Network | 4G rollout continues. Speed increased by +69% Speed Test LTE (2019) KSA Overall 65 Riyadh Jeddah Mobily MNO MNO 60 55 +35% 50 +76% 48 JFMAMJJASOND JFMAMJJASOND 45 40 Dammam Metro Area Makkah 35 30 +51% 29 +69% +102% 25 JFMAMJJASOND JFMAMJJASOND 20 Jan Mar Jun Sep Dec Source: Ookla. Downloa
Slide 125: Digitization: eShop and Mobily App
Digitization | The eShop and Mobily App have digitized our customer interfaces Mobile App Users +115% Mobily App D J F M A M J J A S O N D Appstore Rating eShop Transactions Digital Recharge % 4.7 4.7 +1,838% 3.1 3.4 +93% J F M A M J J A S O N D Jan-Dec 2019 D J F M A M J J A S O N D Note: Unique mo
Slide 126: Performance improvement across Consumer, Business, Wholesale
Commercial | Performance improvement continues across Consumer, Business and Wholesale business areas Consumer Business Wholesale Service MVNO Revenue Revenues YoY BU Operations Margin Revenues Data YoY Revenues Active BU Inbound Base YoY Margins Revenues Postpaid Voice Gross Transit Adds YoY revenu
Slide 127: Consumer tailored propositions
Consumer | Numerous tailored propositions for prepaid, postpaid, broadband data push and FTTH have driven growth Postpaid Hybrid Prepaid Air Fiber 5G Launch Postpaid Devices Roaming RAQI Summer 122
Slide 128: Hajj 2019
Hajj 2019 | Hajj was a success across the board for Mobily Total Gross Adds Total Revenue Speed Test LTE (Hajj 2019) ‘000 activations ‘000 SAR (MbpS) +12.2% +7.7% 71 63 58 53 51 49 46 38 35 31 31 2018 2019 2018 2019 25 23 18 19 13 13 11 Total Data Traffic 7 Dhu'l- 8 Dhu'l- 9 Dhu'l- 10 Dhu'l- 11 Dhu'
Slide 129: Revenues Growth and Strong EBITDA
Key Financial Highlights | Revenues Growth And Strong EBITDA Revenues EBITDA and EBITDA Margin (In SAR Million) (In SAR Million) +13% 9.2% 13,450 4,947 11,865 4,531 629 11,351 4,069 -4.7 38% 37% 32% 4,318 2017 2018 2019 2017 2018 2019 Revenue EBITDA margin IFRS16 Impact Pre IFRS16 EBITDA 124
Slide 130: CAPEX Intensity and Operational Cash Flow Growth
Key Financial Highlights I CAPEX Intensity and Operational Cash Flow Growth CAPEX/ CAPEX to revenues % Operational Cash Flow (EBITDA – CAPEX) (In SAR Million) (In SAR Million) -2% 28% 3,000 2,819 2,760 50 2,187 45 2,500 450 2,208 40 1,712 629 +17% 35 2,000 1,377 30 -9% 24% 1,500 20% 21% 25 2,369 20
Slide 131: Net Debt and First Positive Net Profit
Key Financial Highlights I Net Debt And First Positive Net Profit Net Debt and Net Debt/EBITDA Net Income (Loss) (In SAR Million) (In SAR Million) 31 14,000 6.05 12,687 -6% 5.50 12,000 11,288 10,569 4.95 4.40 (123) 10,000 3.50x 3.85 8,000 3.30 2.49x 2.45x 6,000 2.75 2.20 4,000 1.65 1.10 2,000 0.55 (
Slide 132: GAIN Strategy 2020+
Classification: Mobily INTERNAL USE GAIN Strategy 2020+ | New corporate strategy leads the path to growth in 2020 and beyond Priorities G Grow Core Revenues Purpose To be the Better Choice A Accelerate Digital to Unlock Possibilities Revenue Streams I Implement & Optimize Efficient Delivery How N By
Slide 133: GAIN Strategy: Focus on growth and transformation
GAIN Strategy 2020+ | Focus on growth and transformation Grow the core by Engage with Enter into new Increase B2B share focusing more on customers in a business areas by focusing on high value segment digital way (e.g. fintech) prioritized verticals Advanced Analytics Improve decision making based o
Slide 134: Mobily transformation workstreams
GAIN Strategy 2020+ | Mobily undergoes a transformation to ensure successful implementation of GAIN Transformation Workstreams Digitalization & Technology Culture & Brand Transformation Commercial Push Cost Optimization Customer Exp. Transformation Positioning Office Leading to… …an increase in …a w
Slide 135: Outlook
Outlook | In summary, our journey will enable us to grow sustainably and to transform ourselves for the future 1 As we find new ways to grow, we will not lose our existing momentum 2 Growth will be sustainable and profitable 3 Sustainable competitive advantages will be built around specific areas 4
Slide 136: Thank You / Q&A
Q&A Thank You
Slide 137: PTCL Group
PTCL Group Rashid Khan Chief Executive Officer PTCL Group
Slide 138: 2019 challenging year as Pakistan entered IMF plan
133 2019 was a challenging year as Pakistan entered into the IMF plan resulting into a tough macro-economic situation with rising taxation, significant rupee devaluation, high inflation and shrinking growth
Slide 139: PTCL Group Key Highlights FY 2019
134 PTCL Group - Key Highlights FY 2019 2% growth in consolidated revenue; mainly impacted due to regulatory changes in 2019 Organic annual consolidated revenue growth is 3.5% Consolidated Consolidated Consolidated Revenue [PKR] EBITDA [PKR] Net Profit [PKR] 129 41 2.4 Bn Bn Bn 2.1% 1.0% 58% Source:
Slide 140: Key Strategic & Operational Highlights
135 Key Strategic & Operational Highlights • PTCL revenue grew by 0.4% supported by improvement in customer experience, Corporate Services, DSL, FTTH & IPTV • FTTH subs grew by 159%, complimented by 172% revenue growth • Sub base crossed 23 Mn by net addition of 1.8 Mn and ~1Mn data subs with market
Slide 141: Country Highlights
136 Country Highlights A growing and young population with a lot of potential 5 150 1 . 1 th % mn Largest Country Population Below Spend on Telecom by Population Age 30 from GDP [Annual growth rate of 2.4%] Source: Pakistan Bureau of Statistics
Slide 142: Pakistan's economic outlook remains challenging
137 Pakistan’s economic outlook remains challenging with inflationary pressures affecting consumer spending IMF plan has led to tough policy decisions GDP CPI Inflation PKR 38.5 Trillion 11.6% [set to decline in the future] USD-Rupee Risk Rating parity stable Moody’s B3 stable [PKR/$ 154.9] S&P Stab
Slide 143: Telecom Market: Subscribers and Penetration
138 Telecom Market – Subscribers and Penetration Significant opportunity in fixed line broadband segment for growth Mobile Subscribers & Penetration Fixed Broadband Subscribers & Penetration As % of Population As % of Households 77.7% 5.6% Penetration Penetration Mobile 1 Fixed Broadband 165 Million
Slide 144: Telecom Market: Value Share
139 Telecom Market – Value Share PTCL Group holds 2nd position with 24% of the market value share Total market value - PKR 545 bn Market map by competitor – PKR Bn 200 184 180 69 160 140 129 65 120 106 100 100 411 80 71 60 40 26 20 58 0 Fixed Mobile Business Services PTCL Group Jazz Telenor Zong Oth
Slide 145: Environmental Scan
140 Environmental Scan Highly competitive 4 Growing FTTH player mobile market with 7 Telecom sector continues to be landscape active players highly taxed & regulated Successful 5G trials conducted by Leading mobile operators 2 mobile operators exploring FTTH market
Slide 146: PTCL Group Key Financial Highlights
141 PTCL Group – Key Financial Highlights YoY growth of 2% in Revenue and stable EBITDA Revenue / Revenue Growth (%) EBITDA / EBITDA Margin (%) (PKR bn) +2% (PKR bn) -1% 127 129 41.5 41.4 33% 32% 2018 2019 2018 2019 Net Profit /Profit Margin (%) Capex & Capex/Revenue (%) (PKR bn) (PKR bn) -58% +9% 5
Slide 147: PTCL growth drivers & challenges 2019
142 PTCL growth drivers & challenges 2019 FTTH remained the star performer Corporate, Carrier and Wholesale with 172% YoY revenue growth businesses continued significant growth Operational excellence led to Limited coverage footprint in high reduction in MTTR, improvement in SEC areas & service KPIs
Slide 148: PTCL Key Financial Highlights
143 PTCL – Key Financial Highlights YoY change in EBITDA Revenue / Revenue Growth (%) EBITDA / EBITDA Margin (%) +0.2% -6% 71.3 71.4 (PKR bn) (PKR bn) 21.2 19.9 30% 28% 2018 2019 2018 2019 Net Profit /Profit Margin (%) Capex & Capex/Revenue (%) (PKR bn) -14% (PKR bn) +24% 7.4 6.4 25.0 20.1 35% 10% 9
Slide 149: PTCL Revenue Growth
144 PTCL Revenue Growth YoY revenue has increased by 0.4% in 2019, while normalized revenue grew by 0.7% % Change in Revenue YoY 2.0% 0.7% 0.7% 0.4% 0.0% -2.0% -2.5% -4.0% -6.0% -5.7% -7.1% -8.0% 2015 2016 2017 2018 2019 2019 Normalized Source: Company records
Slide 150: Revenue Segments Composition and Growth
145 Revenue Segments Composition and Growth - 2019 Vs 2018 Growth % 180 Growth Segment revenue 172% contribution 62% 165 30 24% 15 6% 3% 3% 0 -2% -15 -10% -12% -15% -75 Declining Segments -70% Revenue contribution 38% FTTH C&WS Corporate IPTV DSL IBR C&WS Voice Charji EVO Services Voice Source: Comp
Slide 151: PTCL Key Operational Highlights: FTTH
146 PTCL – Key Operational Highlights Significant growth in FTTH Business FTTH Subscribers FTTH Revenue (‘000) (PKR Bn) +159% +172% 36 0.7 14 0.3 2018 2019 2018 2019 Source: Company records
Slide 152: PTCL Key Operational Highlights: DSL
147 PTCL – Key Operational Highlights Increase in ARPUs based on shifting of subscribers on higher bandwidth packages Subs DSL (# in ‘000) DSL Customer Breakup (# in ‘000) -1% 1,436 1,418 1,436 1,418 830 2018 2019 1,086 4 Mbps & Above Less than 4 Mbs ARPU DSL (PKR) +4% 607 1,514 1,578 332 2018 2019
Slide 153: PTCL Corporate Business
148 PTCL Corporate Business Overall 6% growth mainly driven by 14% increase in growing segments which includes Data, Data centers & Cloud Services +6% 7,332 +9% PKR Mn Growth Services 6,918 4,475 4,113 Data 14% 2018 2019 +25% 4,686 5,343 506 406 Data Center 2018 2019 +117% 362 2,231 1,989 Cloud 167
Slide 154: Carrier & Wholesale Business
149 Carrier & Wholesale Business 15% growth in Carrier Business mainly driven by 50% growth in IP Bandwidth Services and 12% growth in DPLC. +15% PKR Mn +50% 10,964 Growth Services 3,625 IP 2,417 9,537 Bandwidth 2018 2019 24% +12% 8,704 3,487 3,109 7,025 DPLC 2018 2019 +6% 1,500 1,592 2,513 2,260 Co
Slide 155: Ufone continued its growth trajectory
150 Ufone continued its growth trajectory in 2019 Significant revenue growth Continuous acquisition helped beat the no. 2 operator drive led to increase in market share to 14.2% Re-farmed the existing Bridged 3G coverage gap vs spectrum to launch LTE to fulfil competition by expanding growing data d
Slide 156: Ufone key financial highlights
151 Ufone key financial highlights Strong topline organic growth of 6.8% & improvement in EBITDA Revenue / Revenue Growth (%) EBITDA / EBITDA Margin (%) (PKR bn) +0.8% (PKR bn) +5% 57.8 58.3 19.6 20.5 35% 34% 2018 2019 2018 2019 Net Profit /Profit Margin (%) Capex & Capex/Revenue (%) (PKR bn) (PKR b
Slide 157: Ufone Normalized Revenue Growth
152 Ufone Normalized Revenue Growth Revenue / Revenue Growth (%) Normalized Revenue / Revenue Growth (%) (PKR bn) (PKR bn) +6.8% +0.8% 57.6 57.8 58.3 53.9 2018 2019 2018 2019 Source: Company records
Slide 158: Spectrum re-farming led to data subscriber growth
153 Spectrum re-farming & investment led to data subscriber growth Market share improved from 14% to 14.2% 90 Days Subscribers YoY Subs Growth (Mn) (Dect’19 vs Dec’18) Market 14.0% 14.2% Share % 25.0 23.4 22.3 22.6 22.7 21.6 241%* 0.9 1.9 2.2 2.9 20.0 8.3 7.8 7.0 6.9 6.3 -24% 15.0 10.0 7% 13.2 13.6
Slide 159: Ubank Key Financial Highlights 2019
154 Ubank – Key Financial Highlights 2019 YoY 48% growth in revenue Revenue / Revenue Growth (%) Operating Profit / Operating Profit Margin (%) (PKR Mn) (PKR Mn) +48% -64% 855 308 6,773 19% 4,582 5% 2018 2019 2018 2019 Net Profit /Profit Margin (%) Capital Adequacy Ratio (%) (PKR Mn) -54% -2.3 p.p.
Slide 160: Ubank Key Operational Highlights 2019
155 Ubank – Key Operational Highlights 2019 Loan base and deposit base grew, supported by expansion in branch network from 141 to 201 outlets Loan Customers & Loan Portfolio Deposits Customers and Deposits Loan Customers (’000) Deposit Customers (’000) Loan Portfolio (PKR Bn) Deposits (PKR Bn) 22 23
Slide 161: Strategic Priorities / Way Forward
156 Strategic Priorities / Way Forward Build FTTH network & Focus on spectrum Grow microfinance improve retention by acquisition to business further enhancing address underserved aggressively while experience subscriber base keeping NPL in check Build/grow ICT, Further expand 4G corporate
Slide 162: Thank You / Q&A
Q&A Thank You
Slide 163: Closing Remarks
Closing Remarks Saleh Al-Abdooli Chief Executive Officer Etisalat Group
Slide 164: Thank You
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