Emirates Telecom. Group Company (etisalat Group) Pjsc · ADX:EAND
Emirates Telecom. Group Company (etisalat Group) Pjsc — Etisalat Group — Investor Day (February 2021)
152 slides from Emirates Telecom. Group Company (etisalat Group) Pjsc's investor day presentation, Feb 23, 2021
Slide 1: Etisalat Group Capital Markets Day 2021
The World’s Fastest Mobile Network Etisalat Group Capital Markets Day 2021 February 23rd, 2021
Slide 2: Agenda
11:00 – 11:10 Introduction Investor Relations AGENDA 11:10 – 11:30 Business Overview Hatem Dowidar Chief Executive Officer – Etisalat Group Etisalat Group Financial 11:30 – 12:00 Karim Bennis Chief Financial Officer – Etisalat Group Results Chief Corporate Strategy & Governance Officer - 12:00 – 12:
Slide 3: 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 4: Business Overview
1 Business Overview Hatem Dowidar Chief Executive Officer - Etisalat Group
Slide 5: Our Group at a Glance
2020 154 million Subscribers 51,708 million Revenue 26,443 million EBIDTA @ 51% margin UAE Pakistan Our Group at a Glance KSA Mauritania Mobile Services Morocco Mali Egypt Cote d’Ivoire Burkina Faso Gabon Benin Niger Mobile & Fixed Services Togo Central Africa 13 of 16 operations are ranked as first
Slide 6: Consolidated View: Group Results Compared to Peers
Group Results Compared to Peers Key Performance Indicators (Comparison on 3m basis) Revenue growth: LCY4 EBITDA Margin Net Profit Margin (Q3 2020/ Q3 2019, % YoY) (in %) (Q3 2020) (in %) (Q3 2020) 1) MTN 3) 16% Etisalat 53% Vodacom 19% Consolidated View Vodacom 1) 8% Telenor 51% STC 19% 3) Telenor 6
Slide 7: Outstanding Accolades
Outstanding Accolades WORLD’S FASTEST MOBILE NETWORK STRONGEST BRAND IN MEA 7
Slide 8: Solid Group Achievements
Solid Group Achievements Network Leadership • Etisalat UAE deployed open virtual Radio Access Network (Open vRAN), a first in MENA. Portfolio Related • Etisalat UAE launched 5G FWA and continues to expand its 5G network, now • Another record year for Etisalat Misr, with covering ~38% of populated ar
Slide 9: Response to Outbreak
Defying a Seismic Disruption: Preparedness, Agility, Resilience Etisalat response to the crisis was in line with best practice and on par, if not higher, than many global operators Non-Exhaustive Zero-rated access to educational URLs & free mobile data for Enabling People, Businesses, and the stud
Slide 10: Country Resilience
Countrywide Readiness: UAE Resilience in place prior to COVID-19 Digitalization main part of country agenda Vision 2021, Abu Dhabi 2030, Vision 2071, AI, etc. Country Resilience Global Leadership in different areas including 1st 1st infrastructure, governance, & business environment Globally in Fibe
Slide 11: The Pandemic Silver lining
The Pandemic Silver lining Crossing the digital adoption divide 11
Slide 12: Industry Challenges
Evolving industry in a dynamic ecosystem: Challenges beyond the pandemic Slowdown in core growth with telcos struggling to replace Industry Challenges this with new services Digital customer expectations continue to evolve with technology Economic pressures are driving enabling next generation opera
Slide 13: Vivid technological landscape
Vivid technological landscape: Implications and potential value add Ubiquitous Total Trust in Bespoke Connectivity Experience Zero Trust Experience 5G & Wi-Fi 6 introduce a new era New devices beyond goggles: “Secure by default" as the new Hyper personalization as a key of converged wireless
Slide 14: Expert Views
Positive macro-economic outlook with caution 2021 GDP Growth is forecasted to International Travel recovered from Vaccination / 100 population: Renewed confidence in recovery is be positive for majority of the initial shock, with but still far UAE one of the fastest countries in the region from pr
Slide 15: Transformation Program Mandate
In the wake of the pandemic: Holding the gains, seizing the opportunities Technology trends Group vision “To become a world class digital operator & to Transformation Program Mandate manage market risks” A C a l l f o r Tra n s f o r m a t i o n Industry Challenges New Normal 15
Slide 16: Final Thoughts
Final Thoughts: Adamancy to realize the strategy & succeed in our transformation The world is barely recovering from the after math of an unprecedented pandemic and many companies are struggling to survive, yet, our 2021 agenda is about transforming and thriving by leading in the new normal and ac
Slide 17: Etisalat Group Financial Results
2 Etisalat Group Financial Results Karim Bennis Chief Financial Officer – Etisalat Group
Slide 18: Financial Highlights
Etisalat Group Financial Highlights AED Million Q4 2020 Growth Growth FY 2020 Growth YoY% QoQ% YoY% Revenue 13,064 -2.1% +0.2% 51,708 -0.9% EBITDA 6,301 +0.4% -8.7% 26,443 +0.3% Financial Highlights EBITDA Margin 48% +1.2pp -4.7pp 51% +0.6pp Net profit 2,048 +4.4% -15.1% 9,027 +3.8% Net profit Margi
Slide 19: Financial Highlights: Revenue and EBITDA Breakdown
Etisalat Group Financial Highlights Revenue Breakdown FY 2020 (AED m) EBITDA Breakdown FY 2020 (AED m) Egypt Others Egypt Others Pakistan 7% 2% 8% Pakistan 2% 3% Financial Highlights 6% 51.7 26.4 Bn MT Bn MT 29% UAE UAE 26% 58% 60% YoY Growth -0.9% YoY Growth +0.3% UAE -5% UAE -4% MT Group (LC +1%)
Slide 20: International Operations Financial Highlights
International Operations Financial Highlights FY 2020 Revenue (AED m) / EBITDA (AED m) / EBITDA Margin (%) Revenue & EBITDA (AED m) / EBITDA Margin (%) / YoY Growth % MT Group FY 2020 Growth Growth in Financial Highlights 49% in AED MAD 48% 46% Revenue 13,535 +2% +1% 64% EBITDA 7,565 +5% +3% EBITDA
Slide 21: Group Revenue
Group Revenue Revenue (AED m) & YoY Growth (%) Sources of Revenue Growth – FY 2020 vs FY 2019 (AED m) 60,000 52,186 51,708 30% 52,186 314 741 283 51,708 50,000 25% 1,578 238 40,000 20% 15% 30,000 5% 10% 4% 20,000 13,341 -3% 13,039 13,064 5% 10,000 -2% 2% 0% 0% 0% -1% 0 -5% Revenue Q4'19 Q3'20 Q4'20
Slide 22: Group EBITDA
Group EBITDA EBITDA (AED m) & EBITDA Margin (%) Sources of EBITDA Growth – FY 2020 vs FY 2019 (AED m) 26,370 26,443 26,370 349 372 105 26,443 648 105 53% 51% 51% 47% 48% 6,277 6,904 6,301 EBITDA Q4'19 Q3'20 Q4'20 FY'19 FY'20 FY'19 UAE MT Group Egypt Pakistan Others FY'20 Highlights EBITDA by Cluster
Slide 23: Group Capex
Group Capex Capex (AED m) & Capex/Revenue Ratio (%) Sources of Capex Growth – FY 2020 vs FY 2019 (AED m) 10,000 8,895 40% 8,895 30% 35% 677 8,000 7,096 22 7,096 30% 1,006 23% 6,000 25% 1,237 255 17% 20% 4,014 14% 4,000 12% 2,944 15% 1,545 18% 12% 10% 2,000 5% 0 0% Capex Q4'19 Q3'20 Q4'20 FY'19 FY'20
Slide 24: Group Balance Sheet & Cash Flow
Group Balance Sheet & Cash Flow Balance Sheet (AED m) Dec-19 Dec-20 Investment Grade Credit Ratings Cash & bank Balances 29,657 31,345 Balance Sheet / Cash Flow Total Assets AA-/Stable 128,266 133,018 Total Debt 23,889 26,701 Net Cash / (Debt) 5,768 4,644 Aa3/Stable Total Equity 57,767 60,550 Cash F
Slide 25: Debt Profile
Debt Profile Diversified debt portfolio Borrowings by Operation Q4 2020 (AED m) Borrowings by Currency Q4 2020 (%) 15,788 USD 23% Euro 7,742 41% MAD Debt Profile 18% 1,588 1,583 Others 18% Group MT Group Egypt Pakistan Debt by Source Q4 2020 (AED m) Repayment Schedule Q4 2020 (AED m) 13,158 12,881 1
Slide 26: Group Dividends
Group Dividends Proposed DPS of AED 80 fils for FY 2020 and additional one-time special DPS of AED 40 fils Cash Dividends (AED m) Dividends Per Share (AED) 6,954 6,954 10,432 1.20 3,477 0.4 0.80 0.80 0.8 3,477 3,477 3,477 3,477 3,477 3,477 Dividends 2018 2019 2020 2018 2019 2020 Interim Final Specia
Slide 27: UAE
UAE COVID-19 drove revenue slowdown, while cost optimisation initiatives supported profitability margins Revenue (AED m) / YoY Growth (%) EBITDA (AED m) / EBITDA Margin (%) 31,466 29,888 16,413 15,765 54% 50% 52% 53% 48% 8,054 7,457 7,402 3,890 4,018 3,670 0% 2% -8% -3% -5% UAE Q4'19 Q3'20 Q4'20 FY'
Slide 28: UAE Revenue breakdown and key KPIs
UAE Revenue breakdown and key KPIs Mobile Revenues(1) (AED m) Fixed Revenues(2) (AED m) Other Revenues(3) (AED m) 12,307 11,315 11,199 10,789 7,844 7,900 -2% -3% 11% 4% 5% 3,091 2,706 -12% 1% 2,110 1,934 1,969 1% 2,638 2,854 2,817 2,794 -1% 2% -7% -12% -15% 0% -2% UAE Q4'19 Q3'20 Q4'20 FY'19 FY'20 Q
Slide 29: Maroc Telecom
Maroc Telecom Growth in international operations with sustained profitability Subscribers (m) Revenue (AED m) / EBITDA Margin (%) Capex (AED m) & Capex/Revenue Ratio (%) 3,000 70.5 72.9 13,535 2,589 67.5 13,221 2,500 59% M a r o c Te l e co m G r o u p 52% 54% 55% 56% 2,000 25% 1,500 20% 1,352 16% 1
Slide 30: Egypt
Egypt Strong revenue growth and profitability Subscribers (m) Revenue (AED m) / EBITDA Margin (%) Capex (AED m) & Capex/Revenue Ratio (%) 4,170 1,441 3,430 79% 26.4 26.2 26.4 45% 39% 41% 891 38% 763 32% 35% 1,124 27% 26% 22% 941 1,075 11% 250 118 20% Egypt Q4'19 Q3'20 Q4'20 Q4'19 Q3'20 Q4'20 FY'19 F
Slide 31: Pakistan
Pakistan Stable performance in local currency Subscribers (m) Revenue (AED m) / EBITDA Margin (%) Capex (AED m) & Capex/Revenue Ratio (%) 3,500 3,178 25.9 25.5 2,940 24.8 3,000 981 2,500 48% 726 2,000 32% 32% 32% 31% 41% 27% 31% 1,500 25% 361 318 1,000 746 722 771 14% 500 Pakistan 99 0 Q4'19 Q3'20 Q
Slide 32: FY 2020
FY 2020 Agility on cost optimisation initiatives supports profitability resilience FY 2020 Highlights 32
Slide 33: 2021 Guidance
2021 Guidance .Stability ………….. Financial Actual Guidance KPI 2020 in AED 2021 in AED Revenue Growth % -0.9% Stable Guidance EBITDA Margin% 51.1% 49% - 50% % EPS (AED) 1.04 Stable CAPEX / Revenue % 13.7% 16% - 18% 33
Slide 34: Etisalat Group Strategy
3 Etisalat Group Strategy Khalifa Al Shamsi Chief Corporate Strategy & Governance Officer - Etisalat Group
Slide 35: Five major global market forces
Five major global market forces are creating both opportunities and threats for Etisalat Group… Major Market Forces Opportunities Threats • Data growth • Decline in core revenues e.g. Next Generation Networks (5G, Fibre) Roll-Out VOIP-voice substitution, USD1.1Tn on 5G Capex to be invested up to 202
Slide 36: Impact of the New Normal
…compounded by the impact of the strategic and operational implications of the “New Normal” created by Covid-19, which Etisalat is proactively responding to Product & Tailored value propositions to hyper-connected consumers and digitally fueled Governments/Businesses Services Portfolio Take advantag
Slide 37: Four strategic imperatives and ten priorities
As a result, Etisalat Group is focusing on four overarching strategic imperatives that are underpinned by ten strategic priorities i ii iii iv Maximize Value of Grow Digital/ Become an Agile, Expand and the Core Business Adjacent Services Digital and Efficient Optimize Portfolio Group 1 3 E t i s a
Slide 38: Strategic Imperative 1: Maximize Value of the Core Business
Strategic Imperative 1: Maximize Value of the Core Business 6 1 Migrate B2B to NextGen services Capturing Data growth Progressive migration of Maximize growth in connectivity services to broadband via innovative E t i s a l a t G r o u p S t ra t e g y managed solutions pricing and packages 5 2 Fixe
Slide 39: Strategic Imperative 2: Grow Digital/Adjacent Services
Strategic Imperative 2: Grow Digital/Adjacent Services 1 Organic development of unique skills/ platforms and win-win partnerships with hyperscalers 2 Continue International Expansion, after Etisalat Digital as establishment of KSA Unit in 2020 E t i s a l a t G r o u p S t ra t e g y regional leader
Slide 40: Strategic Imperative 3: Agile, Digital and Efficient Group
Strategic Imperative 3: Become an Agile, Digital and Efficient Group Focus Areas Breakdown of Focus Areas • Network and IT: - Modernize/share networks and Reset Capex by aligning with demand - Leverage LTE networks but switch gears for 5G roll-out in mature markets E t i s a l a t G r o u p S t ra t
Slide 41: Strategic Imperative 4: Expand and Optimize International Portfolio
Strategic Imperative 4: Expand and Optimize International Portfolio Telecom M&A E t i s a l a t G r o u p S t ra t e g y Continue optimizing footprint via in market Continue screening for opportunistic consolidation, acquisition of licenses and expansion in new geographies – meeting spectrum investm
Slide 42: UAE 5G strategy and six strategic drivers
Of note, in the UAE, Etisalat has designed a 5G strategy that will sustain leadership positioning and enable the realization of tangible benefits across six strategic drivers Strategic Drivers of 5G Benefits of 5G Impact 5G Defend/Grow • Enrich/Premiumize mobile packages by offering Supports superio
Slide 43: Sustainability strategy framework
Also, Etisalat Group has a strong focus on Sustainability with a framework in place to manage key Environmental, Social and Governance areas Sustainability Strategy Framework • Economic Performance • Customer Privacy & Data Security • Anti-competitive practices & Anti-corruption Responsible Marketpl
Slide 44: Closing Messages
Closing Messages Our industry is rapidly transforming, creating threats but critically also significant opportunities, that Etisalat 1 is well positioned to capitalize on to deliver sustained value creation for its Shareholders E t i s a l a t G r o u p S t ra t e g y Etisalat has four Strategic Imp
Slide 45: Q&A
Q&A
Slide 46: Break
Break
Slide 47: Etisalat Misr
4 Etisalat Misr Hazem Metwally Chief Executive Officer - Etisalat Misr
Slide 48: EM 2020 Performance
Progressing steadily towards higher shareholders expectations by enhancing company value drivers 2020 2020 2020 2020 15 % 41.4 % 20 % 41 % EM 2020 PERFORMANC E GLOBAL EBITDA EBITDA FREE CASH REVENUE1 MARGIN GROWTH FLOW2 GROWTH Improvement 2020 2020 2020 2020 12 % 14 % 68 % 2 % NET NET PAID CAPEX PRO
Slide 49: Country Overview: Improving macro economy
Improving macro economy with a promising operator performance MACROECONOMIC HEALTH GDP INFLATION INTEREST RATES CREDIT RATING 3.5% in 2020 -8.2PP drop YoY -400 basis points YoY Fitch, S&P and Moody’s Only country in the region Average inflation of 5.7% in Stimulating economic growth Affirmed a stabl
Slide 50: Egyptian telecom sector landscape
The landscape of Egyptian telecom sector continues to show promise & opportunity while posing challenges & risks that should be managed Market Attractiveness Agreements to acquire SPECTRUM by three mobile operators reaffirms investors’ confidence in the Egyptian market Mobile Market Growth Despite t
Slide 51: Competition Landscape: revenue share growth
A good momentum in revenue share growing measurably faster than competition Value EBITDA Share Margin orange vodafone WE CO M P E T I T I O N L A N D S C A P E 14 % 7.1 % 8.3 % ~EGP2.1 bn REVENUE REVENUE REVENUE MOBILE GROWTH * GROWTH * GROWTH * REVENUE * 2019 27.9% 39.5% 24.7% NA 44.8% 46.5% 2.7% N
Slide 52: COVID-19 Impact and Customer Behaviour
COVID-19 Impact and Customer Behaviour Etisalat was ready for digital adoption, accelerated by Covid-19 and responded with many moves on all fronts COVID-19 outbreak impacted customer behaviour causing a surge in data traffic COVID-19 impact on revenue & traffic Revenue growth Mobile Data Traffic Gr
Slide 53: EM Commercial Performance
Converting base to commitment tariffs while growing enterprise segment Enablers Performance Increasing uptake of Mass Young Youth High well positioned Professionals Value E M CO M M E R C I A L P E R F O R M A N C E segmented market Economic platforms contributing to Consumer robust growth Best va
Slide 54: EM Digital Performance 1/2
EM’s well built capabilities accelerated the digital adoption across all digital platforms during COVID-19 pandemic EM services backed up with digital solutions allowing for contactless transactions to protect our customers during the pandemic EM DIGITAL PERFORMANC E 1/2 Economic 98% 3.8x 4.4x 1.9x
Slide 55: EM Digital Performance 2/2
EM proved its agility and resilience during COVID-19 pandemic through a well communicated safety first along with business and service continuity mandate Agile Technical Efforts Securing Effective Work From Home Customer Care Shifting Towards Experience Self-help & Cost-to-Serve Reduction EM DIGITAL
Slide 56: EM Network Capability
Technology & operational leadership: A result driven mindset focused on investment rationalization & operational efficiency Network 4G Continuity , 2020, % (4G usage % on 4G handsets) Performance 84% 81.15% Total sites in 2020 > 8,331 79.57% 80.21% 81% 78.36% sites 2020 2020 EM NETWORK CAPABILITY
Slide 57: EM 2021 & Beyond: The Way Forward
The Way Forward PEOPLE Implement updated working methods aiming for better cost, higher productivity and employee engagement EM 2021 & BEYOND NETWORK ANALYTICS INVESTMENT Step up IT analytics Continue to invest in and development network and capability as the way technology capabilities for the futu
Slide 58: 2020 Conclusion
2020 Conclusion The economy showed resilience to COVID-19 pandemic evident in stable macroeconomic indicators and making Egypt the only economy showing economic growth in the region in 2020 Telecom industry, despite COVID-19, showed a solid performance in 2020, driven mainly by data, with a two-digi
Slide 59: Q&A
Q&A
Slide 60: PTCL Group
5 PTCL Group Nadeem Khan Acting Chief Executive Officer - PTCL Group
Slide 61: Country Highlights & Telecom Market: Pakistan
Country Highlights & Telecom Market: Pakistan A growing and young economy with a lot of potential; Fixed Broadband Subscribers & Penetration Post Covid, GDP growth outlook for FY’21 expected around 1.5-2%* As % of Households C o u n t r y H i g h l i g h t s & Te l e c o m M a r ke t 220 M 68 % 5.5%
Slide 62: PTCL Group Structure
PTCL Group Structure 62 DVCOM & SmartSky = r= Be Retail eDSL e Wireless Data e Voice e IPTV ME corporate | e ICT Services e Cloud & Data Services e Managed Services PN io=H Wholesale ¢ Carrier services e International business
Slide 63: Overview of Operating Environment
Environmental Scan Telecom sector in Pakistan remains highly taxed & regulated, despite this immense potential exists for growth within the sector Fixed Mobile Microfinance Overview of Operating Environment PTCL is a leader in FBB market Highly competitive 4 player market & The microfinance ec
Slide 64: PTCL Group Key Highlights FY 2020
PTCL Group - Key Highlights FY 2020 (PKR Bn) Consolidated Revenue remained stable despite challenges posed by Covid-19; Normalized Revenue Growth is 5.2% and G r o u p K e y F i n a n c i a l H i g h l i g h t s – P TC L G r o u p EBITDA growth is 9% Consolidated Consolidated Consolidated Revenue EB
Slide 65: Key Strategic & Operational Highlights
Key Strategic & Operational Highlights G r o u p S t r a t e g i c & O p e r a t i o n a l H i g h l i g h t s – P TC L G r o u p Highest FBB new sales in Dec 20 since Expansion in 4G Subscribers (89%) 50% revenue growth supported by Nov 2015 increase in deposit base by 98% and Significant g
Slide 66: PTCL Group Key Financial Highlights
PTCL Group – Key Financial Highlights K e y F i n a n c i a l a n d O p e r a t i o n a l H i g h l i g h t s – P TC L G r o u p Revenue remained stable despite Covid-19 challenges ; YoY Growth of 38% in Net Profit aided by Cost control measures & non- operating income (PKR Bn) Revenue / Revenue Gro
Slide 67: Ufone key financial highlights
Ufone key financial highlights (PKR Bn) Key Financial and Operational Highlights - Ufone Covid lockdowns negatively impacted our growth Revenue / Revenue Growth (%) EBITDA / EBITDA Margin (%) -7.7% +2% -10.5% +9% 58 56 57 20.5 21.3 54 18.4 19.5 2019 2020 35% 34% 35% 37% Reported Normalized Reported
Slide 68: Ufone subscriber base recovering
Ufone subscriber base is recovering post lockdown, supported by expansion in 4G users Key Financial and Operational Highlights - Ufone Ufone 90 Day Subs (Mn) Covid lockdowns period 25.0 23.4 23.5 23.1 22.3 22.4 2.9 3.5 20.0 3.9 4.9 5.5 6.3 6.1 15.0 5.5 5.0 4.7 10.0 14.2 13.8 13.0 12.5 12.9 5.0 - Q4
Slide 69: Ufone Q4 revenue growth
Q4 revenue grew by 1.3% YoY despite second wave of Covid-19 Key Financial and Operational Highlights - Ufone Revenue PKR (Bn) Covid lockdowns period 13.7 13.7 13.6 13.9 12.5 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Source: Internal Reporting 69 Variance % is vs. Q4’19
Slide 70: Ufone CVM revenue and digital transactions
CVM revenue as well as digital transactions continued to show sustained growth Key Financial and Operational Highlights - Ufone CVM revenue Digital transactions (PKR Mn) (% of total recharge) 2,849 17.4% 2,451 15.3% 14.4% 11.3% 8.6% 2019 2020 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 CVM revenue contribution
Slide 71: Ufone customer experience TRI*M scores
We have sustained our customer experience, whereas industry scores continue to slide Key Financial and Operational Highlights - Ufone TRI*M scores 65 64 63 59 59 59 59 58 57 51 49 48 Oct Nov Dec Oct Nov Dec Oct Nov Dec Oct Nov Dec Ufone Telenor Zong Jazz Oct’20 = (Aug’20 + Sep’20 + Oct’20) Nov’20 =
Slide 72: Ubank Key Financial Highlights 2020
Ubank – Key Financial Highlights 2020 (PKR Mn) Key Financial and Operational Highlights - Ubank YoY growth of 50% in Revenue and 326% in Operating Profit Revenue / Revenue Growth (%) Operating Profit / Operating Profit Margin (%) +50% +326% 10,191 1,314 6,773 13% 308 5% 2019 2020 2019 2020 Net Profi
Slide 73: Ubank expanding footprint with digitalization
Expanding footprint with digitalization Key Financial and Operational Highlights - Ubank Services Services Microfinance Loans Branchless Bill Payments Banking Services Microfinance Banking Services Deposit Products Upaisa Money Transfers (in collaboration with Ufone) Home Remittances Mobile Accounts
Slide 74: Ubank Key Operational Highlights 2020
Ubank – Key Operational Highlights 2020 Key Financial and Operational Highlights - Ubank 98% increase in deposit based and 43% increase in loan portfolio Loan Customers & Loan Portfolio Deposit Customers & Deposits No. of Loan Customers (’000) No. of Deposit Customers (’000) Customer Loans (PKR bn)
Slide 75: PTCL Transformation strategy results
PTCL Transformation strategy at the start of 2020 successfully produced results in 2nd HY resultantly delivering growth in Subscribers and Revenue K e y F i n a n c i a l a n d O p e r a t i o n a l H i g h l i g h t s – P TC L Net Adds (000) Revenue -0.7% 14 13 12 10 11 2019 8 7 12 2020 3 10 5 2 8
Slide 76: PTCL Key Financial Highlights
PTCL – Key Financial Highlights (PKR Bn) YoY growth in revenue for third consecutive year; slight decline in EBITDA mainly due to impact of COVID-19 on revenue K e y F i n a n c i a l a n d O p e r a t i o n a l H i g h l i g h t s – P TC L Revenue / Revenue Growth (%) EBITDA / EBITDA Margin (%) Net
Slide 77: Revenue Segments Composition and Growth
Revenue Segments Composition and Growth - 2020 Vs 2019 K e y F i n a n c i a l a n d O p e r a t i o n a l H i g h l i g h t s – P TC L Growth % 15 Growth Segments Declining Segments 11% Revenue contribution Revenue contribution 85% 15% 8% 5% 4% 0.1% 0 -14% -15 Corporate Wireless IBR C&WS Wireline V
Slide 78: Customer Happiness Index
Customer Happiness Index PTCL’s Customer Happiness Index Journey…..being the first one is not easy Key Operational Highlights: Retail Segment Approach Methodology 1 3 7 Categories Network Experience variables Implementation • Daily consistency Rehab Planning & Concept Dec 19 Execution 1. Stability a
Slide 79: Work From Home Transformation in contact centers
Work From Home Transformation in contact centers Opening of New Horizon for Tele Sales, Free Lancing Workforce resultantly maximum output through minimum utilization of resources Key Operational Highlights: Retail Segment Work From Optimized Closure of CC Home for headcount location ~ 90% work by 5%
Slide 80: Focus on key areas to improve Operational KPIs
Key Operational Highlights: Retail Segment Focus on key areas to improve Operational KPIs Pending management process Rehabilitation in small pockets & improvement NETWORK Dry Areas QUALITY PROCESS IMPROVEMENT 24K new dry pocket lines Tracking of each uninstalled order IMPROVEMENT Online visibility o
Slide 81: Performance: FBB sales, churn and net adds
Resultantly FBB sales, churn rate and net adds improved Consistently +ve net adds since last 9 months Key Operational Highlights: Retail Segment Broadband average monthly sales increase from 25K in Q1 to 42 K in Q4 Growth in FTTH Sub Base 50% & xDSL 2% New Sales (‘000) FBB Subs Mix (000) 52 53 47 50
Slide 82: Key Accomplishments by Business Services
Key Strategic Accomplishments in 2020 by Business Services Key Operational Highlights: Business Segment Carrier & Digital Services International Wholesale 1. Sales of ~100 racks at PTCL Tier-3 1. Strategic partnership agreement with 1. Renewal of fixed revenue deals with Zain datacenters Zong Saudi
Slide 83: Business Services Key Financial Highlights
Business Services sustained growth despite Covid Key Financial Highlights: Business Segment 6.2% 6% The contribution of Business Services to the overall PTCL 30.5 revenue has crossed 43% 28.7 27.1 8.2 11% 7.3 Carrier & Wholesale Services grew 4% 6.9 International services also showed a growth
Slide 84: COVID-19 Impact and Cost Optimisation Measures
COVID-19 Impact and Cost Optimasation Measures Impact of Covid-19 on topline mitigated through additional cost optimization measures of PKR 2.7 B. Major cost saving initiatives: • CPEs - Use of refurbished CPEs & price COVID 19 Impact on Revenue: negotiations • HR Initiatives – No Salary increment,
Slide 85: Key Highlights of Group Synergy
Synergy Projects Sites in close proximity between Ufone VSAT links acquired through PTCL satellite Key Highlights of Group Synergy and PTCL to be Consolidated to shut Vendors for Connectivity on some sites in down one site. Baluchistan and KPK. Sites Cons. VSAT Ufone passive maintenance Services cur
Slide 86: Group Synergy Savings Targeted for 2021
Key Highlights of Group Synergy PKR 1.4Bn savings targeted for Synergy Initiatives in 2021 86
Slide 87: Strategic Priorities / Way Forward
Strategic Priorities / Way Forward S t r a t e g i c P r i o r i t i e s / Wa y F o r w a r d Continue to improve Customer Aggressively participate in 4G Continuing to secure loan portfolio experience Spectrum auction and expansion of via gold backed lending. 4G footprint Aggressively rollou
Slide 88: Q&A
Q&A
Slide 89: Mobily Transforming For the Future
6 Mobily Transforming Salman AlBadran For the Future Chief Executive Officer – Mobily
Slide 90: Macro Environment: KSA economy
Macro Environment| KSA economy is a key market GDP 2020* (nominal) GDP Growth 2021** 793 BN (2019) 786 BN (2018) 19th SA 681 BN USD 688 BN (2017) 645 BN (2016) +2.6% 34th EG 362 35th AE 354 45st PK 263 59th MA 112 2020 2021 (*) IMF 2020 est. for selected countries, global ranking, in BN USD (**) KSA
Slide 91: Macro Environment: Covid-19
Macro Environment | Covid-19 Economic slowdown in KSA and internationally Investment uncertainty from Business customers Reduced tourism out- and inbound (incl. Hajj) Massive data consumption increase from Consumers, Business and Government Push of economy digitalization is opportunity for telecom s
Slide 92: Macro Environment: Regulatory Highlights
Macro Environment| Regulatory Highlights • Support of government through free access for most Covid-19 Support government apps and distance learning • eSIM launched, opening new opportunities for eSIM consumers, business and IOT • FTTx Open Access: Extension of FTTx access across Enabling KSA Infras
Slide 93: Outlook: GAIN Strategy
Outlook | GAIN Strategy G Grow Core Revenues A Accelerate Digital Revenue Streams I Implement & Optimize Efficient Delivery N Nurture a Positive Experience for All Stakeholders TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY FEBRUARY 23, 2021 9393
Slide 94: Achievements: Rebranding
Achievements | Rebranding Mobily revamped the brand architecture and its visual identity Reflect the new strategy and brand values (Agile, Clear, Courageous, and Caring) Become more digital and youth friendly Support the growth of Mobily brand value TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MAR
Slide 95: Achievements: Mobile
Overall Recharge Achievements | Mobile Amount +5% 80+ new ATL launches 2019 2020 Launched 5G propositions Added top brands gaming consoles to the sales portfolio in a wider strategy to reach Gamers segment E-Shop delivery SLA at 91% within 3 hours TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKE
Slide 96: Achievements: FTTH
Achievements | FTTH FTTH Sales Achieved highest yearly growth in FTTH Growth +37% base Extension of coverage to 26 cities Open Access started in H2 2020 and 2019 2020 significantly supported our FTTH sales in H2 2020 TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY FEBRUARY 23, 2021 9696
Slide 97: Achievements: Business & Wholesale
Achievements | Business & Wholesale Highest ever revenues with Business Unit High-margin client acquisition drives Business Gross Margin growth Major deals in government and enterprise segments Continued Business Unit Collection improvement YoY Significant Wholesale Revenue growth YoY TRANSFORMING F
Slide 98: Achievements: Technology Mobile
Achievements | Technology – Mobile Mobily Combined Overall Speed Selected Cities Riyadh Jeddah Mobily Combined Overall Speed 2020 +84% +96% J FMAM J J A SOND J FMAM J J A SOND +73% Dammam/ Khobar Metro Area Makkah +111% +106% J FMAM J J A SOND J FMAM J J A SOND 2019 2020 TRANSFORMING FOR THE FUTURE
Slide 99: Achievements: Technology 5G
Achievements | Technology – 5G Acquired 5G spectrum in 2.6 GHz and 3.7 GHz 5G Sites Rollout Started rollout covering 53 cities +517% Commercially launched Timed the launch of 5G with launch of iPhone 12 2019 2020 to optimize market reception TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY
Slide 100: Achievements: Technology IoT
Achievements | Technology – IoT #1 1.2 Years duration 99.97% Completed “Smart meter” project is real-world application of 12 Years IOT 98% Completed Mobily part of the biggest Narrowband IOT smart 10 Years 70% Completed meter project in the Middle East 5 Years Project completed in record time 27% Co
Slide 101: Achievements: Digital Transformation
Achievements | Digital Transformation e-Shop Visitors Accelerated growth in all our digital channels ranging from our portal and e-shop to the app +92% New registrations in the app doubled Online Store visitors and e-Shop orders 2019 2020 skyrocketed TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MA
Slide 102: Achievements: Awards
Achievements | Awards 1st Telecom operator in the MENA region to receive the ISO 22301:2019 certification (Business Continuity Management Systems) Member of SAMENA Most impactful Board of Directors marketing and communication management in the Middle East Best Annual Report Award (Digital Category)
Slide 103: Achievements: Awards
Achievements | Awards TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY FEBRUARY 23, 2021 103 103
Slide 104: Resilient Revenues and Strong EBITDA
Key Financial Highlights | Resilient Revenues and Strong EBITDA Revenues EBITDA and EBITDA Margin +4.4% +8.2% (In SAR Million) (In SAR Million) 14,046 5,350 13,450 4,947 11,865 4,531 38.2% 36.8% 38.1% 2018 2019 2020 2018 2019 2020 Mobily continued to grow its Revenue by 4.4% in 2020 2020 EBITDA
Slide 105: Capex intensity and operational cash flow growth
Key Financial Highlights | capex intensity and operational cash flow growth Operational Cash Flow (EBITDA – CAPEX/ CAPEX to revenues % +1.2% CAPEX) +17.0% (In SAR Million) 2,819 2,760 2,792 (In SAR Million) 2,558 2,187 24% 21% 20% 1,712 2018 2019 2020 2018 2019 2020 CAPEX in 2020 increased by 1.2%
Slide 106: Balanced Net Debt levels
Key Financial Highlights | Balanced Net Debt levels -0.2% 11,288 10,626 10,602 Net Debt and Net Debt 2.49x 2.45x /EBITDA 2.26x (In SAR Million) 2018 2019 2020 Healthy Net debt to EBITDA ratio at 2.26x in 2020 During 2020 Mobily has reduced its total debt by more than SAR 1 billion The company’
Slide 107: Gaining Profitability
Key Financial Highlights | Gaining Profitability +2,412% 783 Net Income (In SAR Million) 31 (123) 2018 2019 2020 Mobily succeeded in recording a net profit of SAR 783 million for 2020, more than 24 times higher than 2019 net profit which amounted to SAR 31 million: reflecting Mobily’s performance
Slide 108: Outlook: GAIN Strategy
Outlook | GAIN Strategy Digital Telco Integrated Telco Mobile Centric 2019 2020 Going forward TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY FEBRUARY 23, 2021 108 108
Slide 109: Q&A
Q&A
Slide 110: Break
Break
Slide 111: Etisalat UAE B2C
7 Etisalat UAE B2C Khaled Elkhouly Chief Consumer Officer – Etisalat UAE
Slide 112: COVID-19 impact on macroeconomic factors and population
COVID-19 pandemic has led to a deterioration of the core macroeconomic factors, with its impact being primarily evident in the GDP contraction and population decline… Impact of COVID-19 on macroeconomic factors and population Expected impact of COVID-19 on real GPD of UAE Estimated decline in expat
Slide 113: Impact of COVID-19 on mobility levels
…as well as the drop in the overall mobility levels, which after Apr’20 lockdown have been trending at ~75% of the pre COVID-19 levels, affecting telecom market, primarily mobile Impact of COVID-19 on mobility levels UAE Mobility Change Index based on Google’s community reports; calculated as the av
Slide 114: Consumer initiatives in response to COVID-19
During these challenging times, Etisalat’s main focus was to support the UAE society, primarily by enabling the distance learning program in the country and providing higher-speed fixed packages & superior content to its subscribers Etisalat Consumer initiatives in response to COVID-19 NON-EXHAUSTIV
Slide 115: Consumer 960 Strategy
To address the various challenges and to thrive in the market, we have been relying on our 960 strategy, which was defined in 2019 and is aimed at empowering consumers throughout each of the 960 moments of the day Etisalat Consumer 960 Strategy C o n s u m e r 9 6 0 S t ra t e g y Online Comms Gamin
Slide 116: 960 Strategy and BOLD Framework
Foundations of 960 strategy entails optimizing our internal operations, excelling in customer experience & growing digital talent but primarily focuses on rethinking our value proposition… Key pillars of our ‘960’ Strategy in the digital age C o n s u m e r 9 6 0 S t ra t e g y & B O L D F ra m e w
Slide 117: Transformation of Value proposition
…by enhancing our digital & adjacent services portfolio and blending core and digital in an innovative way, with 5G positioned as a critical enabler and catalyst of growth C o n s u m e r 9 6 0 S t ra t e g y & B O L D F ra m e w o r k Transformation of Value proposition B O L D Core Marketplace Adj
Slide 118: New Freedom plans
Under the direction of 960 Strategy, in 2020 we introduced our New Freedom plans in mobile, delivering unmatched value by offering a mix of unprecedented telecom and digital benefits ‘Blending core and digital services’ – Introduction of New Freedom Plans B O L D Benefits of New Freedom Plans Unlimi
Slide 119: Expansion of Digital Services: eWallet
In the MFS space, we upgraded eWallet’s features and capabilities, by introducing seamless international money transfer services to 200 countries and expanding the merchant portfolio to exceed 400 brands and 6,000+ outlets across the UAE Expansion of Digital Services – eWallet B O L D Merchant netwo
Slide 120: Expansion of Digital Services: Smiles
In line with our ambition to make Smiles the most used lifestyle app in the UAE, we launched a Block-chain powered rewards exchange feature and entered into the Food Delivery space Expansion of Digital Services – Smiles B O L D Registered Users NON-EXHAUSTIVE # of million users since inception +14%
Slide 121: Core services Mobile: Postpaid and Market Share
In the mobile business, postpaid was an important driver of growth Core services – Mobile: Growth in Postpaid and Mobile Market Share B O L D Mobile Postpaid subscribers Etisalat Mobile Market Share Corporate Market level, % Ke y 2 0 2 0 H i g h l i g h t s +2.3 p.p. +5% 60.9% 58.6% Dec-19 Dec-20 De
Slide 122: Core services Fixed: eLife
In the home segment, with the increasing time spent at home, our primary focus was to provide a superior in-home experience to all users Core services – Fixed: Growth in eLife and COVID-19 related initiatives B O L D eLife subscribers Upgrade to eLife Unlimited Free eLife TV packages Consumer Ke y 2
Slide 123: Devices: 5G portfolio and Upgrade Anytime
In the devices’ space, we continued to expand our 5G devices portfolio to include the most desired smartphones, as well as multiple other smart devices in other categories via flexible payment options (such as the region's first 'Upgrade Anytime' program) Devices - Reinforcement of Etisalat’s positi
Slide 124: Digital capability building and education campaigns
On operational front, we continue to push the adoption of digital channels… Digital – Capability building and Education campaigns B O L D Postpaid Prepaid Devices Ke y 2 0 2 0 H i g h l i g h t s Educational Campaigns “Online is better” o Adding more than 80 features and enhancements to improve the
Slide 125: Adoption of digital channels
…which led to a robust increase in the adoption of our digital touch points, also reflected in the number of online sales transactions Digital – Adoption of digital channels B O L D YoY Growth in Monthly Active Users Digital Sales Growth in %, Dec’20 vs. Dec’19. Active 30 days Ke y 2 0 2 0 H i g h l
Slide 126: Customer Care: AI powered Virtual Assistant
In Customer Care, we expanded our Virtual Assistant capabilities, which led to significant operational efficiencies while maintaining the high customer experience standards Customer Care – Scaling of Artificial Intelligence powered Virtual Assistant B O L D Call Volumes In millions -48% Ke y 2 0 2 0
Slide 127: Next Generation Digital store design
In Retail, we launched our Next Generation Digital store design… Retail – Launching our next-generation digital concept store (1/2) B O L D Key elements in new generation stores Floor plan Self Assisted Stations – Sales Transactions Ke y 2 0 2 0 H i g h l i g h t s Click & Collect – Device & Accesso
Slide 128: Next-generation digital concept stores
…counting 13 stores till date, aimed at providing a brand-new retail experience with strong focus on self-service Retail – Launching our next-generation digital concept store (2/2) B O L D NON-EXHAUSTIVE Mirdif City Center Galleria Al Khalidya mall Ke y 2 0 2 0 H i g h l i g h t s Dubai Mall Arabian
Slide 129: CVM Machine Learning and scaling up
In CVM, we powered up our Machine Learning brain aimed at scaling up our CVM capabilities, enabling us to increase the personalized campaigns 2.5x times… CVM – Machine Learning & Scaling up of CVM capabilities B O L D Machine Learning driven # of CVM campaigns launched automation in CVM Monthly aver
Slide 130: Make your own offer
…and launched ‘Make your own offer’ (under ‘Deals for You’), a first of its kind feature allowing customers to configure their own deal in real-time and enjoy instantly B O L D CVM - Introduction of “Make your own offer” Ke y 2 0 2 0 H i g h l i g h t s 130
Slide 131: Customer Experience Overview
As a result of all these efforts, we further strengthened the relationship with our customers, as reflected in TRI*M index measuring customer satisfaction & loyalty Customer Experience Overview Etisalat TRI*M index Customer Experience Overview Index points +3 points Our continuous focus on customer
Slide 132: Mobile network fastest on earth
In addition, we made history by having our mobile network officially recognized by Ookla as the fastest on earth… Etisalat Mobile Network, fastest on earth Ke y p e r f o r m a n c e h i g h l i g h t s 132 Source: Ookla
Slide 133: Strongest brand in Middle East & Africa
…and sustained our position as the strongest consumer brand in MEA region, as we made it into the top 25 brands in the world Etisalat Brand: The strongest in Middle East & Africa Ke y p e r f o r m a n c e h i g h l i g h t s 133 Source: Brand Finance
Slide 134: Etisalat UAE B2B
8 Etisalat UAE B2B Salvador Anglada Chief Business Officer – Etisalat UAE
Slide 135: Business: COVID-19 impact and digital adoption
During 2020, while our business activity was disrupted by COVID-19, we were able to accelerate on digital adoption and support on key national initiatives COVID-19 Impact Work-from-Home & E-learning Cloud Talk meetings MoE E-learning Broadband Base (# of links ‘000) -7% WFH speed upgrades & Catalog
Slide 136: Business: path for recovery in 2021
In 2021, we see a clear path for recovery with the accelerated adoption of new technologies in a scenario driven by coopetition Real GDP Growth 2019 – 2021 (1) Companies & Residents Leaving the Country 2.5% 2.5% Downward pressure on Economy due to Population Contraction with more residents leaving t
Slide 137: Becoming the Digital Solutions platform
We are executing on our strategy to become the Digital Solutions platform for our customers, transforming our business and enhancing customer experience 2019 2020 2021 Mobile Excellence in Mobile Unlimited Voice Service Center Platform Managed Services E2E Managed Services Network Cloud Solutions SM
Slide 138: Mobile product portfolio and key enablers
In Mobile we continued evolving our product portfolio and build key business enablers to maximize value Portfolio Evolution Platform Platform Key Keyenablers Enablers Preserve the value of data in our plans to get Create stickiness and differentiation Full control, efficiency & agility ready for VoI
Slide 139: Business Edge digital platform
In 2020 we rolled out Business Edge as a digital platform to serve all SMB needs from the cloud Business Edge – A Comprehensive Platform for all Business Needs Performance Business Edge Penetration ARPU Evolution Launched in March 2020 +8% 0.0% BUSINESS • Video Surveillance • Cloud Firewall 8.2% • I
Slide 140: E2E managed services cloud proposition
We are evolving our E2E managed services framework to become a full cloud centric proposition Total Contract Incremental Value Achievement & We have further accelerated on SDWAN & CloudTalk platform development Value Creation Value creation SDWAN CLOUDTALK +19% +168% Core 37% Business ICT 63% 2018 2
Slide 141: Etisalat Digital 2020 Performance
Etisalat Digital has grown 32% YoY in 2020 fueled by Cloud, Cyber Security & IoT solutions Etisalat Digital 2020 Performance Etisalat Digital Perimeter Revenue YoY % ED +32% Future Now 2.2Bn 2.2Bn Total Contract Business TCV Value (AED) Data Center & Cybersecurity IoT & AI Digital Industries Cloud R
Slide 142: Cloud & Data Center business
We have accelerated our Cloud & Data Center business in 2020 with the entrance of hyperscalers in the region and the migration of enterprises and government to the cloud Data Center Capabilities Hyperscalers Hub Boost Data Center Capacity From 24 to 50 MW Business New Data Centers Underway: Al Ain
Slide 143: Help AG acquisition and performance
This year we completed successfully the acquisition and integration of Help AG, delivering a strong performance with a 47% YoY growth Cybersecurity Proposition & Regional Presence HelpAG 2020 Group Performance & References Cybersecurity Portfolio Offices in Joint Proposition E2E Cyber Security Zero
Slide 144: Multi-technology IoT & AI platform
We have built a multi-technology IoT & AI platform while building new capabilities, securing flagship projects and delivering the first 5G use cases Multi-technology IoT & AI Platform Urban Urban Intelligence Intelligence First 5G Smart District Smart City Autonomous car Logistics Energy Smart Stati
Slide 145: Oyoon Video AI platform
Oyoon Video AI platform has been provisioned and expanded the number of cameras & use cases, positioning Etisalat Digital at the edge of AI public safety services Oyoon Project – Video Cloud Platform Platform Security Center screenshot Continuous Monitoring Business Abandoned Objects Overcrowds Driv
Slide 146: Expo 2020 partnership
Expo 2020 will start on October 1st, 2021 and our team turned the postponement as an opportunity to enrich the experience even further Enabling The World’s Greatest Show Official Official Premier Telecommunications Digital Services 1 October 2021 – 31 March 2022 Volunteers Partner Partner Partner Bu
Slide 147: FutureNow innovation engine
FutureNow continues to be our innovation engine and a reference model for collaboration with 3rd parties Co-Creation Lab ADDA ADDA ADDA 15 “Designing the digital government of the “Accelerating Abu Dhabi’s digital transformation” “Design the future campus experience” Design Thinking future” Workshop
Slide 148: Internal transformation to a digital unit
We continued executing our internal transformation program to become a Digital unit We are transforming expanding to digital channels & making our digital channels the our offering preferred option for customers Business Transformation We are also automating our putting more intelligence into & chan
Slide 149: Adoption of Digital Channels
We have boosted the adoption of our Digital Channels and digitalize our processes to increase efficiencies Mobile App B2B Portal Total Unique Active Users Bill Payments- AED Total Unique Active Users Bill Payments- AED +117% +189% +82% +47% 218K ’ 293K 148K 161K Business 2019 2020 2019 2020 2019 202
Slide 150: Conclusion & Way forward
Conclusion & Way forward 1 We are progressing in our transformation journey to become a digital telco We continue protecting our personal communications & connectivity by bundling services while 2 Business delivering superior customer experience “Business Edge” will allow us to become a one stop sho
Slide 151: Q&A
Q&A
Slide 152: Closing Remarks
9 Closing Remarks Hatem Dowidar Chief Executive Officer - Etisalat Group