Mobile Telecommunications Company Saudi Arabia · TADAWUL:7030
Mobile Telecommunications Company Saudi Arabia — Zain KSA — FY2022 Earnings Presentation
35 slides from Mobile Telecommunications Company Saudi Arabia's earnings presentation, 2023
Slide 1: Welcome to Zain KSA FY 2022 Earnings call
Welcome to Zain KSA FY 2022 Earnings call
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 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 Mr. Matta was appointed the key role Mr. AlBawardi has more than 15 years of Directors of Zain Group since November A renowned regional econo
Slide 5: 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 6: 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 7: 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 8: 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% 03 Saudi Plastic Factory Est. 2.93% Founders 47% 53% 04 HH Prince Sultan Bin Mohammed Bin S
Slide 9: Our Financial History
Our Financial History Covid 19 Pandemic Financial History 10,000 9,075 8,386 7,917 7,901 8,000 7,306 7,531 6,699 6,741 6,927 6,404 6,523 6,244 5,934 6,000 4,000 3,004 2,000 505 332 485 280 550 12 231 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (972) (980) (2,000) (1,
Slide 10: Operational Update
Operational Update Eng. Sultan Bin Abdulaziz AlDeghaither CEO 1 0
Slide 11: 2022 Financial Results
5 Le) 0 Million SAR 1 Le) V% Net profit Growth in net profit 53 cities covered by 5G " eee
Slide 12: Zain KSA Today
Zain KSA Today 8.9 Million 1,498 Zainers 248 Shops 45% Data Revenue 5,327 POS Customers Woman: 19 % (Excluding SMS & VAS) Local: 86% 9,952 Total number of sites 64 SAR 15,421 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 13: BoD recommendation to distribute cash dividends to shareholders
BoD’ recommendation to distribute cash dividends to shareholders
Slide 14: 5G Growth
GalSil aletic Vi 2 “5G Stand-Alone” BS Leal cd Bya Jo Bargelona
Slide 15: B2B Growth
B2B Growth The Red Sea Agreement Tabuk university agreement Al Rajhi bank Agreement J2M Undersea Cable
Slide 16: Tamam Growth
Tamam Growth Tamam is a Fintech company established in 2019 in KSA and providing consumer micro-lending services in the kingdom under the supervision of the Saudi Central Bank. We offer instant financing without complicated documentation or visiting bank branches. 16
Slide 17: Technology and Customer Experience
Technology and Customer Experience Launch 5G Stand Alone Expansion of its GeForce J2M Undersea Cable MoU with Nokia NOW Cloud Gaming Tabuk university agreement Launch PPLAYHERA Mena MoU with Huawei Launch 5G LAN
Slide 18: Press and Articles
Press and Articles Eng. Abdulrahman AlMufadda, CTof “Zain KSA”; a shining role model for young leaders in the Saudi Telecom sector
Slide 19: Award and recognition
Award and recognition 4 Awards from Telecom Brand finance Top 100 listed Companies (PCI DSS) Certification review Cloud class C classification Local content certificate Cities service classification certificate MENA Effie Awards 19
Slide 20: Sustainability Rating (A-)
Sustainability Rating (A-) Score in the latest CDP Score Report Climate Change 2022 Corporate Social Responsibility (CSR) & Environment, Social, Governance (ESG) Metrics
Slide 21: Sustainability
Sustainability CLIMATE CHANGE OPERATING RESPONSIBLY INCLUSION GENERATION YOUTH 01. Climate Change 02. Operating Responsibly § Decarbonize our business by § Embed ESG across our value deploying carbon reduction chain, integrate ESG indicators practices & enable the to increase resilience and transiti
Slide 22: Sustainability
Sustainability CLIMATE CHANGE OPERATING RESPONSIBLY INCLUSION GENERATION YOUTH § Networks & Energy Consumption Transition § Strategic Approach & Communications § Waste Management & Circular Economy 22
Slide 23: Sustainability
Sustainability CLIMATE CHANGE OPERATING RESPONSIBLY INCLUSION GENERATION YOUTH § Protecting Customer Data Privacy § Responsible Supply Chain § Disclosure & Reporting § Social Responsibility 23
Slide 24: Sustainability
Sustainability CLIMATE CHANGE OPERATING RESPONSIBLY INCLUSION GENERATION YOUTH § Women in Technology § People with Disabilities § Elderly Community 24
Slide 25: Sustainability
Sustainability CLIMATE CHANGE OPERATING RESPONSIBLY INCLUSION GENERATION YOUTH § Child Online Safety § Digital Literacy § Youth Unemployment 25
Slide 26: Towers Deal
Towers Deal Zain KSA, Completion of selling stakes in the tower's infrastructure to Golden Lattice Investment Company (“GLIC”) owned by the Public Investment Fund (PIF), Zain KSA, HRH Prince Saud Bin Fahad, and Sultan Holding Company. Deal value SAR 3,026 million (USD 807 million) 26
Slide 27: Shareek Deal
Shareek Deal Zain KSA Signs Agreement with Shareek to Launch Hyper- Scale Data Centers
Slide 28: Financial Update
Financial Update Mehdi Khalfaoui CFO 28
Slide 29: Financial Highlights
Financial Highlights GROSS PROFIT [Million SAR] REVENUE [Million SAR] 9075 5.445 5315 7917 7,90 I FP 2,287 2,404 1376 1,452 2020 2021 2022 Q4 2021 Q3 2022 Q4 2022 2020-2021 = 2022042021 032022 042022 EBITDA, EBITDA MARGIN [Million SAR] NET (LOSS) / PROFIT MARGIN [Million SAR] ( Net Profit/(Loss) — P
Slide 30: Financial Highlights
Financial Highlights OPERATIONAL (LOSS/INCOME) [Million SAR] 1,089 1,002 699 379 193 P| 2020-2021 202242021 032022 Q42022 CASH BALANCE [Million SAR] 4,103 512 512 Qi [] 375 [] 412 375 2020 2021» 2922-42021 3.2022 a4 2022 Cersincompantvesigreshave been reclfedocorfrm withthe presentation nthe cure pe
Slide 31: 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 6,007 Government Loan (MoF) Ministry of F
Slide 32: 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 33: Zain
Ow) Zain
Slide 34: More Information
More Information For more information, please visit our website Investor Relations or contact us through: investor.relations@sa.zain.com +966 59 244 8888 Investor Relations app https://sa.zain.com/en/investors/share-statistics 35
Slide 35: Thank You
Thank You All rights reserved - © Zain KSA