26 slides from Emirates Telecom. Group Company (etisalat Group) Pjsc's earnings presentation, Aug 2, 2021
Slide 1: Etisalat Group Q2 2021 Results Presentation
ETISALAT GROUP Q2 2021 RESULTS PRESENTATION 2 AUGUST 2021 - ABU DHABI, UAE
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: Business Overview
BUSINESS OVERVIEW HATEM DOWIDAR Chief Executive Officer Etisalat Group
Slide 4: Financial Highlights Q2 2021
FINANCIAL REVENUE 13.2 bn HIGHLIGHTS Q2 2021 +5.8% yoy / 0.0 qoq • Revenue increase Y/Y is attributed to domestic and EBITDA EBITDA% 6.6 bn 50 % international operations • EBITDA increase Y/Y is -2.0 p.p. yoy / -0.9 p.p. qoq driven by higher revenue and +1.8% yoy / -1.8% qoq cost optimisation initia
Slide 5: Etisalat Group Q2 Financial Highlights
ETISALAT GROUP Q2 FINANCIAL HIGHLIGHTS Expanding Etisalat Group Subscriber growth in Maroc Telecom Group customer base by 7% mobile postpaid and eLife performance is influenced Strong revenue growth segments by increased regulatory despite macro and Return to Y/Y revenue and competitive pressure reg
Slide 6: Financial Overview
FINANCIAL OVERVIEW KARIM BENNIS Chief Financial Officer Etisalat Group
Slide 7: Etisalat Group Financial Highlights Q2 2021
ETISALAT GROUP FINANCIAL HIGHLIGHTS Q2 2021 Pakistan 6% Others 2% Egypt Revenue Growth YoY +5.8% 9% UAE +1% MT Group (LC -2%) +8% 13.2 Egypt (LC +25%) +27% Bn Pakistan (LC +9%) +16% MT 26% UAE 56% Pakistan 4% Others 2% EBITDA Growth YoY +1.8% Egypt 8% UAE -4% MT Group (LC -4%) +6% 6.6 Egypt (LC +30%
Slide 8: International Operations Financial Highlights
FINANCIAL INT’L OPERATIONS HIGHLIGHTS FINANCIAL HIGHLIGHTS MT Group Q2 2021 AED m Growth Y/Y in AED Growth Y/Y in MAD Q2 2021 Revenue 3,480 +8% -2% EBITDA 1,895 +6% -4% 62% EBITDA Margin 54% -1pp -1pp 49% 50% 48% 48% 48% Egypt Q2 2021 Growth Y/Y Growth Y/Y AED m in AED in EGP 46% 5,531 5,653 5,008 4
Slide 9: Group Revenue
GROUP REVENUE REVENUE Revenue (AED m) & YoY Growth (%) Sources of Revenue Growth – Q2 2021 vs Q2 2020 (AED m) Highlights 267 259 109 12 13,216 14,000 13,220 13,216 30% 12,492 76 12,492 In Q2’21 consolidated revenue increased 12,000 25% by 5.8% attributed to domestic and 10,000 20% international oper
Slide 10: Group EBITDA
GROUP REVENUE EBITDA EBITDA (AED m) & EBITDA Margin (%) Sources of EBITDA Growth – Q2 2021 vs Q2 2020 (AED m) Highlights 6,523 127 23 6,641 6,765 6,641 101 19 6,523 In Q2’21 consolidated EBITDA increased 52% 153 by 1.8% attributed to revenue growth and 51% 50% cost optimisation programmes 4% 5% -3%
Slide 11: Group Capex
GROUP REVENUE CAPEX Capex (AED m) & Capex Intensity Ratio (%) Sources of Capex Growth – Q2 2021 vs Q2 2020 (AED m) 457 Highlights 1,800 40% 1,619 1,600 1,528 5 25 In Q2’21 consolidated capex increased by 35% 1,528 1,619 1,400 30% Y/Y 6%, resulting in a Capex / Revenue 1,200 6 1,078 25% ratio of 12%
Slide 12: Group Balance Sheet & Cash Flows
GROUP REVENUE BALANCE SHEET & Balance Sheet (AED m) Dec-20 Jun-21 Investment Grade Credit Ratings CASH FLOWS Cash & bank Balances 31,345 24,280 STRONG BALANCE SHEET Total Assets 133,018 125,233 AA-/Stable WITH LOW LEVERAGE Total Debt 5% 26,701 24,478 -3% Net Cash / (Debt) 4,644 (198) Highlights Tota
Slide 13: Group Debt Profile
GROUP REVENUE DEBT PROFILE Borrowings by Operations (AED m) Borrowings by Currency (%) DIVERSIFIED DEBT PROFILE 14,588 USD 23% Euro 39% 4% Highlights 5% 6,593 -3% MAD 16% New bonds issuance of 1.0 billion Euro 1,673 1,624 Others consisting of two tranches: 22% — 7 years tranche of 500 million Euro G
Slide 14: Group Dividends
GROUP REVENUE DIVIDENDS Interim Dividends (AED bn) / Dividends Per Share (AED) Interim Dividend Payout Ratio (%) CONSISTENT TRACK 3.48 3.48 3.48 3.48 3.48 85.6% 80.7% RECORD OF SHAREHOLDER 78.3% 76.2% 73.3% REMUNERATION 4% 5% -3% Highlights 0.40 0.40 0.40 0.40 0.40 Etisalat Group’s Board approved in
Slide 15: UAE Operation Q2 2021
UAE OPERATION Q2 2021 Highlights Revenue increase is attributed to the recovery in the mobile segment despite commercial activities remaining below pre-COVID-19 levels Changes in revenue mix impacted EBITDA margin Net profit decrease Y/Y due to lower EBITDA and higher depreciation and amortization M
Slide 16: UAE Telecom Operation
UAE TELECOM OPERATION DEBT PROFILE Revenue (AED m) / YoY Growth (%) EBITDA (AED m) / EBITDA Margin (%) • Improvement in Y/Y revenue trend (1st Y/Y 7,382 7,478 7,458 4,016 3,941 3,863 revenue growth since 54% Q1 2020) 53% 52% 1% • Higher CoS impacted -2% -5% profitability despite cost optimisation in
Slide 17: UAE: Revenue Breakdown and Key KPIs
UAE: REVENUE BREAKDOWN AND KEY KPIs DEBT PROFILE Mobile Revenue(1) (AED m) Fixed Revenue(2) (AED m) Other Revenue(3) (AED m) 2,638 2,626 2,807 2,783 2,778 • Recovery in mobile 2,576 segment with 1st Y/Y 2% revenue growth in the 1,998 2,057 2,053 last 8 quarters -8% 6% 0% 3% 3% • VoIP impacts mobile
Slide 18: Maroc Telecom Q2 2021
MAROC TELECOM Q2 2021 Highlights Subscriber growth is mainly driven by the international operations Revenue increase is mainly attributed to growth in international operations, fixed broadband in Morocco and currency appreciation EBITDA increase is driven by international operations, cost optimisati
Slide 19: Maroc Telecom Group
MAROC TELECOM GROUP (1) DEBT PROFILE Subscribers (m) Revenue (AED m) / YoY Growth (%) 73.2 73.6 3,480 3,480 • Regulatory and 68.4 3,213 competitive pressure impacted revenue growth of domestic 8% operations 4% 0% • Sustaining growth in Int’l operations Q2'20 Q1'21 Q2'21 Q2'20 Q1'21 Q2'21 EBITDA (AED
Slide 20: Egypt Q2 2021
EGYPT Q2 2021 Highlights Improvement in subscriber base Revenue growth attributed to strong growth in data and wholesale Higher EBITDA mainly attributed to higher revenue Marginal increase in capital spending focused on network coverage and capacity 20
Slide 21: Egypt
EGYPT DEBT PROFILE Subscribers (m) Revenue (AED m) / YoY Growth (%) 1,226 1,131 26.0 26.5 26.7 968 • Maintaining strong revenue growth driven 27% by higher demand for 18% data and overall market 13% growth Q2'20 Q1'21 Q2'21 Q2'20 Q1'21 Q2'21 EBITDA (AED m) / EBITDA Margin (%) Capex (AED m) & Capex/R
Slide 22: Pakistan Q2 2021
PAKISTAN Q2 2021 Highlights Growing mobile and fixed broadband subscribers Strong revenue growth supported by growth in mobile, fixed and Ubank segments EBITDA growth mainly attributed to higher revenue and lower cost of sales EBITDA margin impacted by changes in revenue mix Higher capital spending
Slide 23: Pakistan
PAKISTAN DEBT PROFILE Subscribers (m) Revenue (AED m) / YoY Growth (%) 900 808 70% 789 26.0 25.6 800 60% 24.8 699 700 50% • Maintained topline 600 40% 500 30% growth with revenue 400 16% 20% growth in all segments 300 6% 10% 200 0% 100 (15%) -10% 0 -20% Q2'20 Q1'21 Q2'21 Q2'20 Q1'21 Q2'21 EBITDA (AE
Slide 24: Etisalat Group Financial Highlights H1 2021
ETISALAT GROUP FINANCIAL HIGHLIGHTS H1 2021 IMPROVED PROFITABILITY AND FCF EVEN WITH REVENUE MIX CHALLENGES Revenue EBITDA Net Profit CAPEX 26.4 13.4 4.7 2.7 AED Billion AED Billion AED Billion AED Billion YOY Growth YOY Growth YOY Growth YOY Growth +3.2% +1.3% +3.9% +3.5% Free Cash Flow EBITDA Marg
Slide 25: 2021 Actual Against Guidance
2021 ACTUAL AGAINST GUIDANCE: BETTER PERFORMANCE THAN GUIDANCE Financial Guidance Actual KPI FY 2021 H1 2021 Revenue Growth % Stable +3.2% EBITDA Margin% 49%-50% 50.7% EPS (AED) Stable 0.55 CAPEX / Revenue % 25
Slide 26: Etisalat Group Investor Relations
ETISALAT GROUP INVESTOR RELATIONS Email: ir@etisalat.ae Website: www.etisalat.com