Etihad Etisalat Co. · TADAWUL:7020

Etihad Etisalat — Q2 2017 Earnings Presentation

15 slides from Etihad Etisalat's earnings presentation, 2017

  1. Slide 1: Investor Presentation 2nd Quarter 2017

    Investor Presentation 2nd Quarter 2017 1 1

  2. Slide 2: Disclaimer

    Disclaimer This document has been prepared by Mobily (the “Company”) solely for presentation purposes. The information contained in this document has not been independently verified and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairn

  3. Slide 3: Contents

    Contents • General Overview • Strategic Overview • Commercial Overview • Financial Overview 3

  4. Slide 4: General Overview | Q2 2017 Main Events

    General Overview l Q2 2017 Main Events  Retroactive reinstatement of government employees’ allowances is expected to lead to recovery of their purchasing power.  Stabilization of SIBOR when compared to Q1 2017 Macro  Agreements between KSA and USA worth around 400 BSAR over 20 years expected to i

  5. Slide 5: General Overview | H1-2017: Laying the foundations

    General Overview l H1-2017: Laying the foundations Laying the foundations Branding & Strategy Network Full IT Positioning Formulation Modernization Transformation  Refocussing on the  Q1 and Q2 witnessed the  Enhancing customer  Enhancing efficiency to differentiating values formulation of the n

  6. Slide 6: In KSA, the macroeconomic outlook in the next 3 years will be more difficult

    Strategic Overview l Macro-Economic Outlook In KSA, the macroeconomic outlook in the next 3 years will be more difficult than before – however, opportunities exist Challenges Opportunities Opportunities • Slower GDP growth period/ •1 National vision 2030 / ICT boost 1 pressure on purchase power •2 G

  7. Slide 7: Mobily differentiates itself along customer benefits leading to differentiated positioning

    Strategic Overview l Branding and Positioning Mobily differentiates itself along customer benefits that lead to a meaningfully differentiated positioning Most important attributes rated Mobily’s New Positioning by customers when considering a communications provider* Mobily has specified a meaningfu

  8. Slide 8: The RISE strategy consists of four overarching strategic tracks

    Strategic Overview l RISE Strategy The RISE strategy consists of four overarching strategic tracks Mobily’s overarching strategic tracks Ignite Strive Regain CUSTOMER Enable to gain R COMMERCIAL strength I EXPERIENCE and DIGITAL S AGILITY and E world-class EXECUTION EFFICIENCY excellence • Strong, m

  9. Slide 9: RISE initiatives are staged over time

    Strategic Overview l RISE Strategy Execution Phases To ensure the right focus, RISE initiatives are staged over time 2019+ Mobily journey back to leadership Future Mobily “To be one of the most admired Saudi companies, creating superior value for our H2 2018- H1 2019 stakeholders” World-class ‘Wow’i

  10. Slide 10: Commercial Overview | Commercial Activity

    Commercial Overview l Commercial Activity  Regain Mobily’s commercial presence in the market.  Revamp the Commission scheme.  Rebuild the relationship with the distributors.  Focus on data to increase market share and profitability.  Capitalize on seasonal occasions, such as Ramadan and Hajj an

  11. Slide 11: Financial Overview | Revenues & Gross Margin

    Financial Overview l Revenues & Gross Margin Revenues Q2 revenues are almost stable when compared to Q1 SAR Million /IFRS(*) 2017: -13% 3,289 2,932 2,908  Improved service revenues QoQ if we consider the 2,865 2,854 -0.4% reduction of equipment sales QoQ.  Impact of Ramadan negative seasonality wa

  12. Slide 12: Financial Overview | EBITDA and Net Result

    Financial Overview l EBITDA and Net Result EBITDA and EBITDA Margin SAR Million /IFRS EBITDA Margin EBITDA Despite the pressure on revenues, the company -21% maintained a healthy level of EBITDA margin at 1,146 32%. 977 932 900 35% 817 34% EBITDA slight decline QoQ is attributed to the 33% 32% 28% -

  13. Slide 13: Financial Overview | CAPEX & Operational Cash Flow

    Financial Overview l CAPEX & Operational Cash Flow (EBITDA – CAPEX) CAPEX/CAPEX to revenues % SAR Million /IFRS CAPEX to Sales CAPEX 980 Continuous efforts towards CAPEX rationalization while maintaining customer experience. 509 34% 438 Gradual ramp-up consistent with the launch of the 343 354 netwo

  14. Slide 14: Financial Overview | Net Debt and Net Debt/EBITDA

    Financial Overview l Net Debt and Net Debt/EBITDA Net Debt and Net Debt/EBITDA SAR Billion/IFRS Net Debt/EBITDA Net Debt 13.6 13.7 14.0 13.7 13.5 • Deleveraging by approximately 500 MSAR in H1 2017 • Close monitoring of the Net Debt and Net Debt/EBITDA ratio. 3.6x 3.6x 3.4x 3.5x 3.7x Q2 2016 Q3 2016

  15. Slide 15: Etihad Etisalat Investor Relations

    Etihad Etisalat Investor Relations Email: Investorcontact@mobily.com.sa Website: Investor Relations Page 15

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