The World’s Fastest Mobile Network
Etisalat Group Capital Markets Day 2021
February 23rd, 2021 11:00 – 11:10 Introduction Investor Relations
11:10 – 11:30 Business Overview Hatem Dowidar Chief Executive Officer – Etisalat Group
AGENDA Etisalat Group Financial 11:30 – 12:00 Karim Bennis Chief Financial Officer – Etisalat Group Results
Chief Corporate Strategy & Governance Officer - 12:00 – 12:30 Etisalat Group Strategy Khalifa Al Shamsi Etisalat Group
12:30 – 13:15 Q&A Session - Break
13:15 – 13:45 Etisalat Misr Hazem Metwally Chief Executive Officer – Etisalat Misr
13:45 – 14:15 PTCL Group Nadeem Khan Acting Chief Executive Officer – PTCL Group
14:15 – 14:45 Mobily Salman AlBadran Chief Executive Officer – Mobily
14:45 – 15:00 Break
Etisalat UAE B2C Khaled Elkhouly Chief Consumer Officer - Etisalat UAE 15:00 – 15:50 Etisalat UAE B2B Salvador Anglada Chief Business Officer - Etisalat UAE
15:50 – 16:00 Closing Remarks Hatem Dowidar Chief Executive Officer – Etisalat Group
16:00 End of Event 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 accuracy of any numbers, statements, opinions or estimates, or other information contained in this Presentation. The information contained in this Presentation is an overview, and should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Where this Presentation contains summaries of documents, those summaries should not be relied upon and the actual documentation must be referred to for its full effect. This Presentation includes certain “forward-looking statements”. Such forward looking statements are not guarantees of future performance and involve risks of uncertainties. Actual results may differ materially from these forward looking statements.
3 1
Business Overview
Hatem Dowidar Chief Executive Officer - Etisalat Group 154 million 51,708 million 26,443 million 2020 Subscribers Revenue EBIDTA @ 51% margin
UAE Pakistan
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 or second in terms of Afghanistan Chad Our Group at a Glance value share
9,027 million 19,347 million 120* fils AA/Aa3 Net Profit OFCF Div. Per Share Credit Rating* @ 17% Margin @ 37% Margin * Inclusive of special 5 Source: Etisalat Group, DPS of 40 fils * Rating by S&P & Moody’s 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% Vodacom 1) 8% Telenor 51% STC 19% 3) Telenor 6% MTN 50% Etisalat 19% STC 6% Axiata 47% Telenor 15% 3) Etisalat 1% Veon 45% MTN 14% Orange 0% Ooredoo 45% Zain 12% Zain -1% Zain 41% Singtel 11% 1) Consolidated View Axiata -2% Vodacom 41% Ooredoo 9% Ooredoo -2% STC 39% Axiata 6% 1, 2) Vodafone 1) -2% Orange 34% Vodafone 6% 3) Singtel -10% Vodafone1) 33% Orange 0% Veon -10% Singtel 26% Veon -31%
Note 1: Vodafone, Vodacom Revenues, EBITDA and Net Profit margin are based on the reported half-year results covering the period of Q2 and Q3 2020 Note 2: Vodafone reported Net Profit is Vodafone Adjusted Net Profit, i.e. before exceptional items (for example impairments) Note 3: MTN Financials and Orange Net profit are H1 2020 6 Note 4: With LCY is intended the evolution in the currency used by the Telecom Groups to report their financial results: for example for Telenor is NOK, for Vodafone EUR, etc. Source: Company reports, Etisalat Group Outstanding Accolades
WORLD’S FASTEST MOBILE NETWORK
STRONGEST BRAND IN MEA
7 Solid Group Achievements Network Leadership
• Etisalat UAE deployed open virtual Radio Access Network (Open vRAN), a Portfolio Related first in MENA. • Etisalat UAE launched 5G FWA and continues to expand its 5G network, now • Another record year for Etisalat Misr, with covering ~38% of populated areas. excellent growth in revenue and net profit. • UAE’s TRA allocated spectrums in the mmWave band range for 5G services • Mobily turnaround continues with strong • Mobily extended its 5G network to 48 cities across Saudi Arabia. revenue growth. • Etisalat Misr obtained a 2 x 10 MHz frequency spectrum in the 2600 MHz • Mobily’s brand value grew by 31% to reach $1.1bn, according to Brand finance. • Moov Mauritel awarded provisional 4G license • PTCL’s fixed broadband subscribers growing steadily. • Ubank continued its growth momentum and achieved a 50% growth in its revenue YoY by Digital Agenda increasing its customers loan portfolio and deposits. • Etisalat UAE Mobile App users reached around 1.9 million users • Maroc Telecom has brought together all its • Key Digital wins through Etisalat Digital and Help AG with renowned entities. African Subsidiaries across MT Group under “Moov Africa” brand • Ufone Launched digital financial services 'Upaisa services with more than 250k App downloads in 1 month. • Improved wholesale Synergies at Group level, with leveraged joint negotiations protecting • Ufone successfully crossed 10 million data customers despite Covid-19 challenges, revenues and achieving significant savings aided by expanding its LTE footprint. • Etisalat Misr Mobile App users crossed 4.3m showing 2x growth from 2019. • Etisalat Misr Music App crossed 600k users, and Mobile Financial Services relaunched after migration to a new bank partner 8 • Maroc Telecom Launched Mobile Money Transfer App ‘MT Cash’ 9 Response to Outbreak Preparedness,Agility, a Seismic Disruption: Defying Etisalat response to the crisis was in line with best practice practice operators best global with many line in than was higher, crisis not the if to par, on response and Etisalat SocialResponsibility Commercial Operational ...... donations Promotional campaigns to drive up COVID non to due Delay disconnection Free for ICP months two apps platform on Madrasa to Free access students Zero locations locations managed support via of geo 3rd level and 2nd abroad E servers & Remote smart customer redundancy location in & care, with & Enhancements Upgrades Network extra network resources critical Allocating to IoT Telemedicine Platform Work (VOD, Free content CloudTalk Promotions Home on Unlimited nsure nsure Resilience - /AI platforms containment for diseases rated access to educational URLs & free mobile data free data for & mobile URLs to educational rated access - From availability of spares and suppliers in suppliers spares and of availability abroad Collaboration Collaboration Platform - Home Catalogue Businesses Catalogue for StarzPlay , Switch TV, OSN) Switch , - payment payment home for customers Plans and Freedom Freedom and Postpaid Plans eLife - & remote learning & remote learning 19 Non charitable charitable - industries house house and - redundant redundant - Exhaustive Enabling Enabling seamlessly while ensuring safety of of safety ensuring while seamlessly everything ecosystem swiftly and and swiftly ecosystem everything Society as a whole for a remote a for whole a as Society staff and customers and staff People, Businesses, and the the and Businesses, People, - 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.
Global Leadership in different areas including 1st 1st infrastructure, governance, & business environment Globally in Fiber In the Region to Penetration launch 5G
1st 1st Country Resilience Diversification of economy and large investments in Digital & ICT, Education, & Health Regionally in IMD World Regionally in Telecom. Digital Competitiveness Infrastructure Index TII Ranking (14th Globally) (7th Globally)
Adoption: Mobile broadband subscriptions >250%* 2nd 27th (1st Globally), Individuals using the internet ~98.5%* (5th Globally) Globally in Mobile Globally in Fixed 10 Broadband Speed Broadband Speed * Of population The Pandemic Silver lining Crossing the digital adoption divide
11 Evolving industry in a dynamic ecosystem: Challenges beyond the pandemic
Slowdown in core growth with telcos struggling to replace this with new services Digital customer expectations continue to evolve with technology Economic pressures are driving enabling next generation operations, shift in operating models and e.g. AI, automation, etc. surfacing the need for synergies New global competitors emerging (hyper-scalers, LEO Satellites, etc.) with intensifying
Industry Challenges OTT competition
High capex requirements for 5G Need to step up internal rollout will affect the number of engine and culture to enable Horizontal platforms have networks per market future requirements become increasingly dominant with scale as negotiation 12 leverage 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 access. AR/VR headsets & haptic feedback standard for remote workforce differentiator. . Complementary technologies that gloves offering Extended Reality . Trust Nothing, Verify Everything. . AI & ML enable instantly tailored co-exist to support different use (XR) . Digital Responsibility & digital experience. cases. . XR to become a major mobile Cybersecurity as key consumer . XR at the center for compelling . Offering more opportunities for computing platform, with requirements. merged physical & digital personal digitization across all industries. standalone connectivity & off the . Biometric and MFA technologies experience. . Powering the future of Home & shelf applications. to bolster identity verification. . Omni-channel marketing & Identify Office networking, IoT and Edge . New focused deployments in . Cloud solutions for remote and management as key enablers. devices gaming, healthcare & education. adaptable cybersecurity
Remote Hyper- Internet of Empowered
Industry Topics Everything Automation Everything Edge
• Secure & reliable technologies • ML with AI: MLOps: featuring • IoT will enable the transition of • Edge Cloud: distributed edge enabling Anywhere Operations automated ML development conventional physical activities to devices that interact directly with • New technologies offering better • Scalable Industrial AI deployments digital. cloud services. access to information for different industries. • Embedded in MaaS & Micro- • Cloud enabled edge devices: IoT, • Enabling critical services such as • AI on the Edge for advanced mobility solutions to transform API gateways, and edge healthcare and education insights & accelerated decision urban transportation. processing. • Cloud and XaaS solutions as key making. • New IoT applications bridging the • AI at the edge: AI running on edge enablers • MLOps: accelerate development, gap in disrupted Healthcare and or data collection devices. experimentation and delivery. Education services.
Source: Intel, Cisco, CES 2021, Sophos, Deloitte, Ericsson, Gartner, Bain 13 MFA: Multi Factor Authentication | MLOps: Machine Learning Operations | MaaS: Mobility as a Service 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 witnessed in: equity index, active jobs countries in the region from pre-Covid levels globally index, and positive news sentiments in key sectors, e.g. technology, telecom, oil & gas, and travel and tourism.* . UAE economy most likely to recover by end of 2021. . Announcements of mega projects in key markets, e.g. The LINE in KSA. Global & Regional PMIs are steadily improving from April 20 dip, reflecting While local mobility is still far moderate recovery (<50=contraction) from pre-Covid restriction . Plans for major cultural and sport levels in most countries Expert Views events remain intact for 2021 and 2022. . Political stability improving in the region with restored political and economic ties within GCC. . International travel is likely to remain subdued until the end of the year.
14 Source: IMF for GDP, latest figures as available in October 2020 & January 2021, IHS Markit for PMI: January 2021, Our World in Data for Vaccinations (top countries above 1m population), Google for Mobility, World Travel Tourism Council for international travel (average monthly forward Int flight booking change). * GlobalData, Equity and deals as of 31 Dec 2020, jobs as of 29 Dec 2020, news sentiment and filings sentiment as of 31 Dec 2020 GDP: Gross Domestic Product | PMI : Purchasing Managers Index 15 A Call for Transformation Holdinggains, the seizing the opportunities In the wake of the pandemic:
Industry Challenges Technology trends
New Normal Group vision
Transformation Program Mandate “ To To become a world class digital operator & to to & operator digital class world a become manage market market manage risks ” 16 Way Forward Adamancy toAdamancy realize Final Thoughts: ...... and digital participation. participation. and digital is 2021 Portfolio optimization customer deman Sustaining our technological leadership we strongly believe in their importance to any leading Group. sides of Soft the business occupyconsiderable a agenda; part our in interactions and meet customers’ evolving expectations.digital customerDigitizing experience enriching and protecting core services. Growth in Digital and adjacencies operations Delivering against our transformation tracks has it critical, butis toaugmented be with internally and for customers. yet, The barelyworld is recoveringfrom the after math of an unprecedented pandemic andmany companies our agenda 2021 about is transforming and thriving d the the year of and ensuring that experience. in orderto mitigate against and risks other ensure the EXPO! remain relevant, we will continue to pursue inorganicgrowth opportunities that meet investmentour criteria. UAE is destined destined UAEis to host the much awaited event, and we are looking forward to our exclusive telecom CapEx is an is essential component of our plans, we have to utilize technology in orderto step up our digital spend is spend is used to is is the cornerstone of our Strategy, not itis only the driverfor future growth but will also help in the by expanding the networks 5G strategy support by leading in the new normal and accelerating the transformationdigital our transformation, digital & realization aspirations.of succeed in ourtransformation people, people, culture, brand, social responsibility and sustainability in the and the UAE the the KSA excellent delivery in all aspects other of delivery of business while while aligning are to struggling survive 5G deployments5G with value, and enhance , , 2
Etisalat Group Financial Results
Karim Bennis Chief Financial Officer – Etisalat Group 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% EBITDA Margin 48% +1.2pp -4.7pp 51% +0.6pp Net profit 2,048 +4.4% -15.1% 9,027 +3.8% Net profit Margin 16% +1.0pp -2.8pp +17% +0.8pp Capex 2,944 -26.7% +90.6% 7,096 -20.2% Capex/Revenue 23% -7.6pp +10.7pp 14% -3.3pp
Q4 2020 Highlights FY 2020 Highlights Financial Highlights • Revenue decrease Y/Y is attributed to the UAE operations that • Revenue decrease Y/Y is attributed to COVID-19 impact across our was partially compensated by growth in international operations markets impacting mobile prepaid, roaming revenue and handset sales • EBITDA stable Y/Y despite the lower revenue is driven by ongoing cost optimisation initiatives and lower provision for bad debt • EBITDA stable Y/Y despite the lower revenue is driven by ongoing cost optimisation initiatives • Improvement in Y/Y EBITDA margin • EBITDA margin increase Y/Y to 51% • Net profit increase Y/Y due to better contribution from associates, lower impairment and lower net finance and other costs • Net profit increase Y/Y due to better performance by associates, lower impairment and royalty • Lower capital expenditure Y/Y attributed to the UAE operations • Lower capital expenditure in domestic and international operations 18 Etisalat Group Financial Highlights
Revenue Breakdown FY 2020 (AED m) EBITDA Breakdown FY 2020 (AED m)
Egypt Others Egypt 7% 8% Others Pakistan 2% Pakistan 2% 3% 6%
51.7 26.4
Highlights Bn MT Bn MT 29% 26% UAE UAE
58% 60% Financial YoY Growth -0.9% YoY Growth +0.3%
UAE -5% UAE -4% MT Group (LC +1%) +2% MT Group (LC + 3%) +5% Egypt (LC +15%) +22% Egypt (LC +20%) +27% Pakistan (LC 0%) -7% Pakistan (LC - 3%) -10%
19 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 49% in AED MAD 48% 46% Revenue 13,535 +2% +1%
64% EBITDA 7,565 +5% +3% EBITDA Margin 56% +1pp +1pp
Highlights 21,173 20,694 20,394
Egypt FY 2020 Growth Growth in in AED EGP Revenue 4,170 +22% +15% 20% 10,353
9,540 9,737 EBITDA 1,726 +27% +20% Financial EBITDA Margin 41% +2pp +2pp
Pakistan FY 2020 Growth Growth in in AED PKR Revenue 2,940 -7% 0% 14% FY'18 FY'19 FY'20 EBITDA 912 -10% -3% Revenue EBITDA EBITDA Margin 31% -1pp -1pp
20 Group Revenue
Revenue (AED m) & YoY Growth (%) Sources of Revenue Growth – FY 2020 vs FY 2019 (AED m)
60,000 30% 52,186 51,708 52,186 314 741 283 51,708 50,000 25% 1,578 20% 238 40,000 15% 30,000 10% 4% 5% 20,000 13,341-3% 13,039 13,064 5% 10,000 2% -2% 0% 0% 0% -1% 0 -5% Q4'19 Q3'20 Q4'20 FY'19 FY'20 FY'19 UAE MT Group Egypt Pakistan Others FY'20
Highlights Revenue by Cluster (FY 2020) • In FY’20 consolidated revenue decreased by 0.9% attributed Revenue to COVID-19 impact driving slowdown in domestic operations Domestic vs. Int’l International • UAE revenue growth impacted by lower voice revenue, mobile roaming and handsets sales due to the COVID-19 impact • Revenue from international consolidated operations increased MT Egypt by 4% Y/Y resulting in 41% contribution to Group revenue: 20% UAE Int'l Group 58% 41% 64% — Revenue growth in MT Group mainly attributed to int’l Pakistan subsidiaries and fixed broadband in Morocco 14%
Others — Revenue growth in Egypt mainly attributed to strong 2% growth in mobile broadband Others 1% — Revenue growth in Pakistan negatively impacted by currency devaluation while it was stable in local 21 currency 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% 47% 48% 51%
6,277 6,904 6,301
Q4'19 Q3'20 Q4'20 FY'19 FY'20 FY'19 UAE MT Group Egypt Pakistan Others FY'20
Highlights
EBITDA by Cluster (FY 2020) EBITDA • In FY’20 consolidated EBITDA increased by 0.3% attributed to Domestic vs. Int’l International cost control measures that compensated the impact of revenue decline • EBITDA in the UAE impacted by lower revenue as a result of the COVID-19 impact • EBITDA of consolidated international operations increased by Int'l MT 6% Y/Y resulting in 39% contribution to Group EBITDA: Egypt UAE 39% Group 17% 60% 73% ― Positive contribution from Maroc Telecom Group Pakistan attributed to performance of international subsidiaries 9%
Others ― Positive contribution from Egypt due to robust revenue Others 1% growth 1% ― Negative contribution from Pakistan impacted by 22 currency devaluation and higher cost of sales 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% 4,014 14% 20% 4,000 12% 2,944 15% 1,545 10% 2,000 18% 12% 5% 0 0% Q4'19 Q3'20 Q4'20 FY'19 FY'20 FY'19 UAE MT Group Egypt Pakistan Others FY'20 Excluding spectrum acquisition Highlights
Capex Capex by Cluster (FY 2020) . In FY’20 consolidated capex decreased by 20% resulting in a Domestic vs. Int’l International Capex / Revenue ratio of 14% . Lower capital spend in the UAE focused on investment in data centres, the network’s capacity and speed, and 5G deployment Egypt 40% Int'l . Capital expenditure in international operations declined Y/Y 51% by 19% and contributed 51% to consolidated Group capex: Pakistan UAE 20% ― Lower capex spend in both domestic and international 48% MT Group operations of MT Group with focus on FTTH network 38% Others ― Higher capex spend in Egypt due to spectrum 2% Others acquisition 1% ― Lower capex spend in Pakistan focused on mobile 23 network enhancement Group Balance Sheet & Cash Flow
Balance Sheet (AED m) Dec-19 Dec-20 Investment Grade Credit Ratings
Cash & bank Balances 29,657 31,345 AA-/Stable Total Assets 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 Flow (AED m) Dec-19 Dec-20 Highlights
Operating 19,426 18,968 • Improved liquidity with net cash position Investing (8,603) (7,129) • Slightly lower operating cash flow due to changes in working Financing (9,678) (9,443) capital
Balance Sheet / Cash Flow Net change in cash 1,145 2,396 Lower investing cash outflow attributed to lower cash capex Effect of FX rate changes 174 (684) • • Slightly lower financing cash outflow mainly attributed to Reclassified as held for sales (24) (23) higher net proceeds from bank borrowings Ending cash balance 29,657 31,345 • Maintained high credit ratings with stable outlook
Note: Debt represents interest bearing debt i.e. bonds, banks borrowings, vendor financing and other financial obligations. It excludes lease obligations. 24 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 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) Debt Profile 13,158 12,581 12,881
6,294 5,888
1,638 414 548
Bank Borrowings Bonds Vendor Financing Others Within 1 Yr 1-2 Yrs 2-5 Yrs Beyond 5 Yrs
Note: Debt represents interest bearing debt i.e. bonds, banks borrowings, vendor financing and other financial obligations. It excludes lease obligations. 25 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
2018 2019 2020 2018 2019 2020 Interim Final Special
Dividend Yield(1) (%) Dividend Payout Ratio (%) Dividends 115.6% 6.7% 80.7% 80.0% 4.8% 5.0%
2018 2019 2020 2018 2019 2020 Proposed final dividends of 40 Fils per share bringing the full year dividends to 80 Fils per share. In addition, proposed one time special dividend of 40 fils per share. As a results, the DPS for 2020 is AED 1.20 and is subject to the shareholders approval in the AGM scheduled on 17 March 2021
(1) Dividend yield is based on share per price as of 11 May 2020, 11 August 2020 and 22 February 2021 26 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% 48% 50% 52% 53%
8,054 7,457 7,402 3,890 4,018 3,670 0% 2% -8% -3% -5%
Q4'19 Q3'20 Q4'20 FY'19 FY'20 Q4'19 Q3'20 Q4'20 FY'19 FY'20 UAE
Net Profit (AED m) / Profit Margin (%) Capex (AED m) & Capex / Revenue Ratio (%)
8,346 7,943 4,419 31% 3,413 27% 2,508 24% 24% 27% 27% 15% 14% 13% 11% 1,912 2,005 1,779 941 1,092
Q4'19 Q3'20 Q4'20 FY'19 FY'20 Q4'19 Q3'20 Q4'20 FY'19 FY'20
27 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% 1% 3,091 2,706 2,638 -12% 2,854 2,817 2,794 -1% 2,110 1,934 1,969 1% 2% -7% -12% -15% 0% -2%
Q4'19 Q3'20 Q4'20 FY'19 FY'20 Q4'19 Q3'20 Q4'20 FY'19 FY'20 Q4'19 Q3'20 Q4'20 FY'19 FY'20 UAE
Mobile Subs(4) (m) & ARPU(5) (AED) Fixed Broadband(6) Subs (m) & ARPU(7) (AED)
89 97 85 504 503 501
8.54 0.82 0.82 7.94 7.99 0.79
2.27 2.32 2.37 0.37 0.37 0.38 0.03 0.02 0.02 Q4'19 Q3'20 Q4'20 Q4'19 Q3'20 Q4'20 Postpaid Prepaid Blended ARPU 1P 2P 3P ARPU (1)Mobile revenues includes mobile voice, data, rental, outbound roaming, VAS, and mobile digital services (2)Fixed revenues includes fixed voice, data, rental, VAS, internet and TV services (3)Others Revenues includes ICT, managed services, wholesale (local and int’l interconnection, transit and others), visitor roaming, handsets and miscellaneous (4)Mobile subscribers represents active subscriber who has made or received a voice or video call in the preceding 90 days, or has sent an SMS or MMS during that period (5)Mobile ARPU (“Average Revenue Per User”) calculated as total mobile revenue divided by the average mobile subscribers. 28 (6)Fixed broadband subscriber numbers calculated as total of residential DSL (Al-Shamil), corporate DSL (Business One) and E-Life subscribers. (7)ARPL (“Average Revenue Per Line”) calculated as fixed broadband line revenues divided by the average fixed broadband subscribers. Maroc Telecom
Growth in international operations with sustained profitability
Subscribers (m) Revenue (AED m) / EBITDA Margin (%) Capex (AED m) & Capex/Revenue Ratio (%)
72.9 3,000 2,589 70.5 13,221 13,535 67.5 2,500
59% 56% 2,000 52% 54% 55% 25% 1,352 1,500 20% 16% 1,000 830 3,319 3,449 3,521 10% 572 10% 500 334
0 Q4'19 Q3'20 Q4'20 Q4'19 Q3'20 Q4'20 FY'19 FY'20 Q4'19 Q3'20 Q4'20 FY'19 FY'20 Y/Y % Growth (AED) +2% +1% +6% -1% +2%
Revenue Breakdown FY 2020 EBITDA Breakdown FY 2020 Capex Breakdown FY 2020 Maroc Telecom Group
Morocco Morocco Int'l Int'l Morocco Int'l 65% 55% 45% 35% 43% 57%
29 International operations include Morocco, Benin, Burkina Faso, CAR, CDI, Chad, Gabon, Mali, Mauritania, Niger and Togo Egypt
Strong revenue growth and profitability
Subscribers (m) Revenue (AED m) / EBITDA Margin (%) Capex (AED m) & Capex/Revenue Ratio (%)
4,170 1,441 79% 26.4 26.2 26.4 3,430 45% 39% 41% 891 38% 763 32% 35% 27% 26% 941 1,075 1,124 22% 250 11% 118 20%
Q4'19 Q3'20 Q4'20 Q4'19 Q3'20 Q4'20 FY'19 FY'20 Q4'19 Q3'20 Q4'20 FY'19 FY'20
Y/Y % Growth (AED) +29% +18% +19% +22% +22% Excluding spectrum acquisition Egypt
Highlights
• Y/Y stability in subscriber base
• Y/Y revenue growth attributed to data and wholesale segments
• Y/Y EBITDA growth mainly attributed to higher revenue
• Capital spending increased in Q4 due to the new spectrum acquisition
30 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 99 0 Q4'19 Q3'20 Q4'20 Q4'19 Q3'20 Q4'20 FY'19 FY'20 Q4'19 Q3'20 Q4'20 FY'19 FY'20
Y/Y % Growth (AED) -17% -1% +3% -17% -7% Pakistan Revenue Breakdown FY 2020 USD / PKR FX Rate (PKR)
165.7 QoQ YoY 159.8 Avg: -4% 159.8 Avg: +7% 154.9 166.8 154.9 Ufone EoP: -4% EoP: +3% 40% 160.8 161.6 155.6 150.8
PTCL 53% Q4'19 Q3'20 Q4'20 FY'19 FY'20
U Bank Avg EoP 7% 31 FY 2020
Agility on cost optimisation initiatives supports profitability resilience
Highlights
2020 2020 FY FY
32 2021 Guidance
.Stability …………..
Financial Actual Guidance KPI 2020 in AED 2021 in AED
Revenue Growth % -0.9% Stable
EBITDA Margin% 51.1% 49% - 50% Guidance % EPS (AED) 1.04 Stable
CAPEX / Revenue % 13.7% 16% - 18%
33 3
Etisalat Group Strategy
Khalifa Al Shamsi Chief Corporate Strategy & Governance Officer - Etisalat Group Five major global market forces are creating both opportunities and threats for Etisalat Group…
Major Market Forces Opportunities Threats
Next Generation Networks (5G, Fibre) Roll-Out • Data growth • Decline in core revenues e.g. VOIP-voice substitution, USD1.1Tn on 5G Capex to be invested up to 2025 • Enterprise segment growth price-based pressures etc. • Capture value from digital adjacencies in both B2B and • Competition from OTTs and Platform/Ecosystem Revolution B2C other digital players Strategy 5 of the 10 largest US public companies are horizontal platforms1) • Partnerships with • Being outpaced by more hyperscalers agile/digital players Agile and Digital Transformation • 5G use cases and network • Pressure on Capex Organizations are accelerating digital business initiatives cost efficiencies Investments • Big data/AI driven insights
Etisalat GroupA Software-led World • New use cases due to ‘New Software is dominating the Telco (Cloud, Virtualization, AI, Robots,…) Normal’ e.g. e-education, entertainment etc. • Improved agility, customer Intelligent Edge experience and efficiencies 75% of Enterprise data will be generated at the Edge by 2025
Source: GSMA Intelligence – 2025 Capex Outlook, Gartner - What Edge Computing Means for Infrastructure and Operations Leaders, Gartner Research on Pace of Digital Transformation, 35 Etisalat Group; (1) Microsoft, Apple, Google, Amazon and Facebook – based on FY19 data …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 advantage of growing digital adjacencies e.g. MFS, e-health, e-education, Smart City Apps, Content
Re-setting of ambition for digital channel adoption across all segments Customer Experience Strategy Re-evaluation of role and scale of all physical channels e.g. Technician visits, Contact/Sales Centres
Need for truly agile and elastic organizations factoring into account fluid/remote working environments
Organization Efficient and lean organizations that are open to embracing new digital tech
Etisalat Group Need for new talent skills mix that can thrive in the new cultural norm
Reinforcement of network advantage by continuing to invest at the right pace in e.g. 5G/MEC Network & IT Continued alignment of IT capabilities with new future commercial and internal organizational demands
36 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 Shift Consumer to Capture Synergies Bundles 2
Strategy Reset Capex
4 Migrate B2B to 5 Grow Etisalat Digital NextGen services 6 No Touch Journeys
7 8 9
Etisalat Group Grow MFS Modernize HR Optimize International
10 Enable Execution
In subsequent slides, we define each strategic imperative by capturing our ten strategic priorities1) along with other key initiatives
Source: (1) Captured in “red” font on subsequent four slides 37 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 managed solutions pricing and packages
5 2 Strategy Fixed Sector Opportunity Shift Consumer to Bundles Accelerate the adoption of Fiber Roll-out and bundles by providing more monetization via value and better experience Value-added propositions to mitigate VOIP impact
Etisalat Group 4 3 Tailored Propositions Richer Segmentation
Protect and increase the Use of uplifted AI-driven share of growing profitable customer value management segments e.g. SMBs and HVC for up-selling & cross-selling
38 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 regional leader in Government/ 3 IoT, Cloud, Security, Enterprise/SMB: Perform selected Digital M&A activity to acquire Edge Computing and Strategy Grow Etisalat competencies/platforms and accelerate market entry Artificial Intelligence Digital 4 Support Etisalat Group operations through capability/platform sharing and go-to-market
5 Etisalat Group Accelerate growth of Mobile Financial Services Etisalat Group as a In major markets across the footprint key “Digital Lifestyle” player in Consumer: 6 the region Digital adjacencies Blend core services, digital services and devices in innovative Entertainment and Smart bundles
39 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 - Further advancements in network virtualization and the adoption of cloud - Continue our IT Transformation journey and deploy digital platforms • Customer Journeys:
Strategy 4 1 - Digitize and re-imagine journeys to offer a “No-touch” experience Talent and Network - Enhance digital channels such as App, Website and Social Media Culture and IT - Innovate and optimize customers’ contacts via introduction of virtual agents and digital stores • Operating Model: - Agile ways of working: systematic scale-up of agile frameworks e.g. Dual 3 2 Agile Working, Scrum, DevOps and Design Thinking
Governance for Synergy Capture: optimization of governance to fully Etisalat Group Enabling Execution Enabling - Operating Customer leverage economies of scale potential Model Journeys - Efficiency Measures: Implement a range of broad cost optimization measures e.g. digitization of cross-functional processes, optimization of organizational structures, smart Capex planning and passive/active network sharing • Talent and Culture: - Modernize HR by focusing on organizational health, delayering and increasing talent renewal and development across key areas 40 Strategic Imperative 4: Expand and Optimize International Portfolio
Telecom M&A
Continue optimizing footprint via in market Continue screening for opportunistic consolidation, acquisition of licenses and expansion in new geographies – meeting
spectrum investment criteria Strategy
Digital M&A and Bolt-Ons Etisalat Group Perform selected Digital M&A activity to Explore new ventures and strategic acquire competencies/platforms and partnerships in selected adjacencies accelerate market entry
41 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 superior data bundles Core Achieving • Defend and monetize High/Mid Value customers Vision… Drive Digital Services • Expand/Enrich value chain positioning beyond connectivity via delivery of new 5G use cases – Drive the Growth Digital Lifestyle, Industry X.0, Edge, Smart City etc.
Strategy Digital • Higher throughput/speeds 5G leadership via Future to Improve Customer Empower • Improved QOS and lower latency Value focused roll Experience Societies • Automated provisioning/upgrade experience out Improve Network • 5G cost per GB significantly lower than 4G …And • Savings opportunities via Group synergies and
Ambition Efficiency network sharing Etisalat Group To Unleash Power of • Agility via e.g. cloud native operating model • New capabilities e.g. Network slicing, Edge Become Digitization a World • Digital skills and capabilities enhancement Class Support Government • Improve UAE ICT Rankings Digital • Deliver marquee use cases e.g. autonomous cars Agenda Telco • Stimulate UAE economy
42 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 Marketplace • Customer Satisfaction • Governance, Transparency & Accountability Business and • Customer Health & Safety • Enterprise Risk management Practices Customers • Digital Innovation • Responsible Marketing Communications • Product Service & Quality
• Sustainable Procurement Practices Strategy
• Talent Attraction, Retention • Digital Access & Inclusion & Development • Social Impact Our Connected • Diversity & Equal Opportunity People Communities • Emiratization
Etisalat Group • Occupational Health & Safety
• Climate Change & Energy Management Environmental • Waste Management & Recycling Protection • Water & Biodiversity Management
43 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
Etisalat has four Strategic Imperatives focusing on: (i) Maximizing the value from the Core, (ii) Growing
Strategy 2 Digital Adjacencies in both B2B and B2C, (iii) Becoming a more Agile, Digital and Efficient Group and (iv) Optimizing the Portfolio
Etisalat has taken a leading role on 5G within the UAE and is also taking a prominent role on 5G across
3 other developed markets Etisalat Group
4 Etisalat is committed to improving all aspects of Sustainability with a clear Strategy in place
44 Q&A Break 4
Etisalat Misr
Hazem Metwally Chief Executive Officer - Etisalat Misr Progressing steadily towards higher shareholders expectations by enhancing company value drivers
2020 2020 2020 2020
15 % 41.4 % 20 % 41 % GLOBAL EBITDA EBITDA FREE CASH REVENUE1 MARGIN GROWTH FLOW2 GROWTH Improvement
2020 2020 2020 2020
12 % 14 % 68 % 2 % NET NET PAID CAPEX PROFIT PROFIT DIVIDENDS INTENSITY2
MARGIN GROWTH GROWTH IMPROVEMENT EM 2020 PERFORMANCE
2020 2020 2020 2020 2020 30 % 46 % 51 % 77 % 8 % MOBILE INTERNET MOBILE INTERNET ADSL REVENUE ADSL TRAFFIC GLOBAL ARPU REVENUE TRAFFIC GROWTH GROWTH GROWTH GROWTH GROWTH
1.P&L KPIs source : Consolidated financials in local currency 2. Free cash flow and capex intensity are excluding new spectrum 48 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 stable outlook rating showing positive growth 2020 vs. 13.9% in 2019 and attracting investments of B+,B ,and B2 respectively
CHALLENGES NETWORK INVESTMENTS DIGITIZATION SUSTAINABLE RETURN DIVERSITY & CUSTOMIZATION A sustainable investment Capitalizing on a promising Striking a balance between Expanding a wide array of stream to cater for the digital outlook & reinforcing capturing market demand services to cater for the increasing demand for operational efficiency and expenditures variability in customer digital inclusion & management needs in the new normal
connectivity OVERVIEW
Egypt is a leading growth market, with a telecom sector OUTLOOK achieving a double digit growth over the past 5-years IMF 2025*
*Market growth – CAGR 2015-2020 (% of service revenue)
COUNTRY Emerging Markets 44 23 13 13 11 9 2025 2025 2025 7 6 6 6 6 6 5 4 3 3 3 3 2 2 2 % 7.4 % 8.9 % 1 1 0 0 0 0 0 0 5.6 REAL GDP INFLATION UNEMPLOYE-
2020 2020 MENT Iran
KSA 2020
China
Brazil
Egypt
Sudan Ghana Kenya % 5.7 %
Nigeria 3.5
Tunisia Mexico
Zambia
Uganda
Rwanda
Pakistan
Morocco
Thailand
Malaysia Tanzania
Sri Lanka Sri 9.6 %
Myanmar
Indonesia
Cambodia
Argentina
Cameroon
Philippines
Bangladesh
South Africa South Côte d’Ivoire Côte 49 Sources: IMF report Oct’20 | Central bank of Egypt | Moody’s Rating: May-20, Fitch Rating: Jul-20, S&P Rating: Nov-20 *IMF forecast in fiscal years 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 the outbreak of COVID-19, Mobile market sustains strong growth (~10.4% in 2020) 1 outpacing overall GDP growth and many other industries Youth Egypt’s mass population of youth is one of the main growth pillars for telecom, EM is the 1st operator in Egypt to launch a full digitally customizable tariff, which gained traction among youth
Digitization Digitization became one of the main enablers & opportunities in the market. EM is reinforcing its digital capabilities to optimize its OpEx and CapEx structure , while driving new revenue streams in parallel.
LTE LTE still maintained significant and healthy traffic momentum in the market. (EM data traffic2 grew by
INDUSTRY OVERVIEW 60% in 2020) Enterprise Enterprise market growth (EM EBU revenue witnessed a double digit growth in 2020) is further sustained by the country’s megaprojects. Adjacencies Opportunities to export ICT services, business process outsourcing, as well as expansion to microfinance, and mobile money services (EM Cash Wallet transactions and value increased by 202% & 156% respectively in 2020)
50 Source: 1 Estimate 2: EM data traffic incl. MI, ADSL, MBB, & NR A good momentum in revenue share growing measurably faster than competition
Value EBITDA Share Margin
orange vodafone WE
14 % 7.1 % 8.3 % ~EGP2.1 bn REVENUE REVENUE REVENUE MOBILE
GROWTH * GROWTH * GROWTH * REVENUE * LANDSCAPE
27.9% 39.5% 24.7% NA 44.8% 46.5% 2.7% NA 2019
28.8% 41.4 % 23.9% NA 43.9% 42.5% 3.4% NA
2020 COMPETITION
Focusing on becoming Egypt’s Aiming to accelerate digital Focusing on high value and Hammering on 1st national top digital telco brand, and on development and provide data segments, adopting more- brand, 1st integrated operator delivering insightful & innovative solutions and for-more proposition approach, (fixed & ADSL bundling) while segmented services to enrich unmatched customer while adopting a Digital First directing spending towards lives in a changing world. experience approach driving structural systems and digital cost reduction transformation
51 * Mobile revenue growth Sources: EM Financials | Vodafone & Orange release | WE revenue estimate | 2020 Q4 Vodafone revenue & EBITDA estimate 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
Revenue growth Mobile Data Traffic Growth
ADSL Traffic Growth
19 impact onimpact 19
-
revenue &traffic revenue
19 Impact
COVID
-
20 20 19 20
’ ’ ’ ’
1 4 2 2
Q1’19 Q2’19 Q3’19 Q4’19 Q Q2’20 Q3’20 Q Q1’19 Q Q3’19 Q4’19 Q1’20 Q Q3’20 Q4’20
Consumer & Contactless Extra Quota Digital Exclusive My Etisalat
EM COVID Enterprise Payment Data & Entertainment Online Offers App
Enablement Recharge Value
customer offerings customer Producing quality and relevant relevant andquality Producing 52 Converting base to commitment tariffs while growing enterprise segment
Enablers Performance
Increasing uptake of Mass Young Youth High well positioned Professionals Value segmented market platforms contributing to
robust growth Economic . Best value . 1st mover towards . Fully customizable data . Large voice, data . 1st mover to micro family hybrid centric tariff (digital bundles & fixed Consumer Differentiators commitment concept penetration of 50%) connectivity . Converting non-data . Suite of digital content . Unique in-house
PERFORMANCE users (Music, Sport, games, loyalty platform Etc…) . Digital content
Commitment share percentage among EM customer base keeps growing reaching 60% in 2020 EOY
Focusing on offering Amid the outbreak of COVID-19, 2020 witnessed a EBU propositions significant customization in propositions: DOUBLE capitalizing on Free MBB & MI usage for collaboration apps Economic collaboration and deep . DIGIT
understanding for the . Free Office 365 with Microsoft teams license REVENUE GROWTH EM COMMERCIAL new norm . Flexible payment plans IN LINE WITH
Enterprise CONSUMER SEGMENT DESPITE COVID EM holds the 1st fully digitized business tariff in Egypt Differentiators . full onboarding through Etisalat Business App
53 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
2
/ 1
Economic 98% 3.8x 4.4x 1.9x Digital UNIQUE DIGITAL DIGITAL DIGITAL DIGITAL Touch APP USERS RECHARGE VALUE RECHARGE BILL PAYMENT Points GROWTH GROWTH BASE BASE ’20 vs ’19 ’Dec 20 vs ’Dec 19 ’20 vs ’19 ’20 vs ’19
2x 24% 2x 1.6x E-SHOP WALLET CASH WALLET Digitization Digital MY ETISALAT APP REVENUE REVENUE TRANSACTIONS CASH purchases GROWTH GROWTH GROWTH Customer Experience Customer & wallet GROWTH
’20 vs ’19 ’20 vs ’19 ’20 vs ’19 ’20 vs ’19 EM DIGITAL PERFORMANCE 24% 16mn 50% 13% Digital PLATFORM PLATFORM REAL-TIME ENGAGED CVM Content & SUBSCIPTIONS SUBSCIPTIONS CVM CUSTOMERS GROWTH SINCE CVM GROWTH Dec. 2020 campaigns ’Dec 20 vs ’Dec.19 online vs. offline Mar. 19
54 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 IVR COST TO UTILIZATION WORK FROM HOME ENABLEMENT SERVE 72% 118% Enhancement
Economic 35% since 2017 Enhancement since 2017 Up to 1,400 Up to 250 Secured Daily Daily WFH Meetings connections Participants CHATBOT HITS 146% Digitization Growth vs. 2019 HEADCOUNT Operational Efficiency Operational OFFICE-BASED CC STAFF FULL REDUCTION STAFF WORKING WORKING FLEDGE FROM HOME FROM HOME ONILE EM DIGITAL PERFORMANCE 2/2 TRAINING 22% 100% 70% Reduction CONTACT since 2017 RATE Of Total Of Total Office-based Customer Care 43% Enhancement HC HC since 2017
55 Technology & operational leadership: A result driven mindset focused on investment rationalization & operational efficiency
Network 4G Continuity , 2020, % Performance (4G usage % on 4G handsets)
84% 81.15% 79.57% 80.21% . Total sites in 2020 > 8,331 81% 78.36% sites 78% 2020 74.07% 2020 72.86% . Total expansions growth 75% 15,040 27 mbps of ~118% over 2019 72% 69% 3G/4G 4G . 4G Throughput reached 66% EXPANSION THROUGHPUT ~27 MBPS 63% ACTIONS Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Investment LTE Handset Penetration , YoY, % Efficiency +122% 2020 2020 ▪ Due to huge traffic growth > 60% EM signed an agreement to 51.0% 60 % 37.0% 4G acquire a new spectrum, 23.0% DATA TRAFFIC CONTRIBUTION and it plans to invest ~EGP Dec’18 Dec’19 Dec’20 INCREASE TO TOTAL
EM NETWORK CAPABILITY 10 bn in the coming 3 years TRAFFIC
Network Availability, YoY, % ▪ Prioritizing Network Deployment based on +0.4% maximum traffic yield 2020 2020
98.54 98.70 98.98 21 % >20 % MI SUBS MI GROWTH ARPU Dec’18 Dec’19 Dec’20 GROWTH
56 The Way Forward
PEOPLE Implement updated working methods aiming for better cost, higher productivity and employee engagement
NETWORK ANALYTICS INVESTMENT Step up IT analytics Continue to invest in and development network and capability as the way technology capabilities for the future to maintain Etisalat competitiveness
SHAREHOLDERS EM 2021 & BEYOND Continue maximizing value to shareholders despite prevailing challenges through enhancing DIGITIZATION profitability and creating new ADJACENCIES Expanding on digital self service revenue streams Expand in B2B line & providing and digital core propositions & new services ( IoT, Triple Play, optimizing cost fixed services, gated communities, business process Utilizing digital assets to actively outsourcing & financial services) play in content, E-commerce & M-commerce services
57 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-digit growth outpacing GDP and other industries
EM grew faster than the market and increased its value share despite the special context of 2020 supported with various agile
product moves across all segments CONCLUSION
EM’s implemented company-wide digital transformation program & developed smart processes promoted efficient operations during COVID-19 pandemic & accelerated customer digital solutions offerings
Continuous investments in network and technology capabilities maintained Etisalat competitiveness and further fostered data revenue contribution
Moving Forward, EM will be harvesting its digitization agility while working further on expanding digital self service & digital propositions as well as focusing on adjacent revenue streams beyond the core
58 Q&A 5
PTCL Group
Nadeem Khan Acting Chief Executive Officer - PTCL Group 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
220 M 68 % 5.5% 5th Largest Country Population Below Penetration by Population Age 30
Fixed Broadband Risk Rating 1.3 % 1.87 Million* Moody’s B3 Stable Spend on telecom Mobile Subscribers & Penetration
S&P Stable from GDP As % of Population
CPI USD-Rupee 80%
Inflation parity stable Penetration Country Highlights & Telecom Market eased to 8% [PKR/$ 161]
Mobile 176 Million Source: Pakistan Bureau of Statistics; World Bank, Census Data: GSMA [3G/4G 91 Million] 61 *Moody’s rating, SBP *PTA adjusted numbers in 2020 62 PTCL Group Structure Environmental Scan Telecom sector in Pakistan remains highly taxed & regulated, despite this immense potential exists for growth within the sector
Fixed Mobile Microfinance
. PTCL is a leader in FBB market . Highly competitive 4 player market & . The microfinance eco system comprises one of the most affordable in the of 11 banks, and 29 NBMFI’s that jointly . Broadband market remains highly world is providing financial services to the untapped in Pakistan, with PTCL diverse set of micro, and small emerging as a challenger in FTTH . Industry growth being led by 4G entrepreneurs. subscribers . The year came with multiple challenges . Significant interest in FTTH by majorly the Corona pandemic. The sector competitors, leading to extensive . Covid has accelerated the shift remained committed to serve its dual rollout in Tier 1 & Tier 2 cities towards data while voice traffic is mission of financial sustainability and plateauing social impact. . PTCL license renewed for the next 25 years . In order to address capacity . U bank is the fastest growing bank, challenges, GoP* has planned despite the challenging circumstances; spectrum auction for 4G by mid of the bank with its vigor to fight 2021 strengthened its foundation by Overview of Operating Environment increasing its loan portfolio and deposit base
*Government of Pakistan 63 PTCL Group - Key Highlights FY 2020
Consolidated Revenue remained stable despite challenges posed by Covid-19; Normalized Revenue Growth is 5.2% and (PKR Bn) EBITDA growth is 9%
Consolidated Consolidated Consolidated
PTCL Group Revenue EBITDA Net Profit – 129 40 3.3
0.1% 2.7% 38% Group Key Financial Highlights
Source: Internal reporting 64 Key Strategic & Operational Highlights
PTCL Group . 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 growth in data traffic . Improvement in Customer experience loan portfolio by 43%. resulting in 23% improvement in FBB . New sales bounced back to pre-Covid . 47% of GLP is secured via Gold Backed churn, 1.7 Mn fewer complaints in levels Loans 2020 vs 2019, reduced MTTR from . Continuous digitalization leading to Hi g hl ight s . 46% of fresh loans have been 40hrs in Q4 2019 to 23 hrs in Q4 2020 improvement in digital transactions (43% YoY reduction) processed via Digital Loan Acquisition ratio App . Consistent positve Net Adds for FBB . Launch of new MFS (UPaisa) brand . for the last 9 months of 2020 – 80K U bank, with its network of 201 identity showing encouraging results branches and 199 ATMs across 183 . Business services sustained growth cities and rural areas in Pakistan,
(6.2% revenue growth YoY) & Operational disbursed loans in excess of PKR. 28 . PTCL revenue growth accelerated in billion. Q4 2020. Growth in Q4 was 3.7% . The balance sheet footing of the Bank against 0.7% decline till Q3 rose to PKR. 70 billion, thus covering a journey of PKR.30 billion in just 12 months.
. Dividend of Rs. 100M paid in 2020 Group Strategic 65 PTCL Group – Key Financial Highlights 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 Growth (%) EBITDA / EBITDA Margin (%) Net Profit / Profit Margin (%)
PTCL Group +5% +9% +253%
-0.1% -2.7% –
129.5 129.4 127.7 134.3 41 44 5.8 40 40 +38% 2019 2020 32% 31% 32% 33% 3.3 2.4
1.7 Hi g hl ights 2% 3% 1% 4%
Reported Normalized Reported Normalized Reported Normalized
CAPEX & CAPEX / Revenue (%) Free Cash Flow +1,141%
-22% 8.34 41 32 31% 25%
0.67
2019 2020 2019 2020 Key Financial and Operational 66 * Normalized growth is after adjusting impact of Covid-19 and regulatory changes affecting Ufone Ufone key financial highlights (PKR Bn) Covid lockdowns negatively impacted our growth
Ufone Revenue / Revenue Growth (%) EBITDA / EBITDA Margin (%) - +2% -7.7% -10.5% +9%
58 56 57 20.5 21.3 54 18.4 19.5 2019
2020 35% 34% 35% 37% Hi g hl ights
Reported Normalized Reported Normalized
Net Profit / Profit Margin (%) CAPEX & CAPEX / Revenue (%) 70% 17% +22%
17.7 -7% -7% -9% -3% 14.5 1.5 33% 25%
3.6 4.3 5.0
Key Financial and Operational 2019 2020 Reported Normalized
67 * Normalized growth is after adjusting impact of Covid-19 and regulatory changes affecting Ufone Ufone subscriber base is recovering post lockdown, supported by expansion in 4G users
Ufone 90 Day Subs
Ufone (Mn) - Covid lockdowns period 25.0 23.4 23.5 22.3 22.4 23.1 2.9 3.5 Hi g hl ights 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 19 Q1 20 Q2 20 Q3 20 Q4 20
2G 3G 4G Total Key Financial and Operational
Source: Internal reporting 68 Q4 revenue grew by 1.3% YoY despite second wave of Covid-19
Revenue PKR (Bn) Covid Ufone lockdowns - period
13.7 13.7 13.6 13.9
12.5 Hi g hl ights
Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Key Financial and Operational
Source: Internal Reporting 69 Variance % is vs. Q4’19 CVM revenue as well as digital transactions continued to show sustained growth
Ufone CVM revenue Digital transactions - (PKR Mn) (% of total recharge)
2,849 17.4% 2,451 15.3% Hi g hl ights 14.4%
11.3%
8.6%
2019 2020 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20
. CVM revenue contribution increased from Digital transactions continues to show growth, top drivers are: 4% to 5% . Telenor Easypaisa . ATM - Banks Key Financial and Operational . Ufone App / Ufone Website / USSD
Source: Internal Reporting 70 We have sustained our customer experience, whereas industry scores
continue to slide Ufone
- TRI*M scores
65 64 63
59 59 59 59 58 57 Hi g hl ights 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 = (Sep’20 + Oct’20 + Nov’20) Key Financial and Operational Dec20 = (Oct’20 + Nov’20 + Dec’20)
Source: TRIM Study (Kantar TNS) 71 Ubank – Key Financial Highlights 2020 (PKR Mn)
YoY growth of 50% in Revenue and 326% in Operating Profit
Ubank - Revenue / Revenue Growth (%) Operating Profit / Operating Profit Margin (%)
+50% +326% 10,191 1,314
Hi g hl ights 6,773
13% 308 5%
2019 2020 2019 2020
Net Profit / Profit Margin (%) Capital Adequacy Ratio +4.9 p.p. +257% 21.7% 906 16.8%
9% 254
4% Key Financial and Operational 2019 2020 2019 2020 72 Expanding footprint with digitalization
Services Services
Ubank - Microfinance Loans Branchless Bill Payments Banking Services Microfinance Banking Services Deposit Products Upaisa Money Transfers
Hi g hl ights (in collaboration with Ufone) Home Remittances Mobile Accounts
201 199 45K 1,479K 346K
Branch Network (#) ATMs (#) Upaisa Agents (#) Deposit Customers (#) Loan Customers (#) Key Financial and Operational
73 Ubank – Key Operational Highlights 2020
98% increase in deposit based and 43% increase in loan portfolio Ubank
- Loan Customers & Loan Portfolio Deposit Customers & Deposits
No. of Loan Customers (’000) No. of Deposit Customers (’000) Customer Loans (PKR bn) Customer Deposits (PKR bn) +43% +98% Highlights 31 46
22
17 23 346 1,479 314 21 287 11 840 188 12 6 621 118 8 435 318 153
1 22 1 Key Financial and Operational
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 74 PTCL Transformation strategy at the start of 2020 successfully produced results in 2nd HY resultantly delivering growth in Subscribers and Revenue
Net Adds (000) Revenue
PTCL -0.7% – 14 13 12 10 11 2019 8 7 12 2020 3 10 5
2 8 Hi g hl ights Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 +3.7% (8) (11) (6) (6) (6) (8)
(20) (15) (19) (22) Voice DSL Q1 - Q3 Q4
From Negative to Positive Rev Growth 3.7% in Q4 20 vs Q4 19
Key Financial andVIS Operational Credit Rating Company Limited (VIS) has reaffirmed entity ratings of PTCL at ‘AAA/A-1+’ (Triple A/A-One Plus). The medium to long term rating of ‘AAA’ denotes highest credit quality with negligible risk factors. 75 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
PTCL Revenue / Revenue Growth (%) EBITDA / EBITDA Margin (%) Net Profit / Profit Margin (%) –
+0.4% +2% +3% -2.0% +2% -5.0%
71.8 73.0 20.0 20.0 20.3 6.5 71.5 71.5 19.6 6.3 6.0 6.3 2019 2020
Hi g hl ights 28% 27% 28% 28%
9% 8% 9% 9%
Reported Normalized Reported Normalized Reported Normalized
CAPEX & CAPEX / Revenue (%) Free Cash Flow 216% -45% 5.86 25
35% 14 19%
2019 2020 Key Financial and Operational (5.04) 2019 2020 * Normalized growth is after adjusting impact of Covid-19 and Credit 76 Monitoring Policy Revenue Segments Composition and Growth - 2020 Vs 2019
PTCL Growth % – 15 Growth Segments Declining Segments 11% Revenue contribution Revenue contribution 85% 15%
Hi g hl ights 8%
5% 4%
0.1% 0
-14% -15 Corporate Wireless IBR C&WS Wireline Voice
Services Data Data Key Financial and Operational
77 Customer Happiness Index
PTCL’s Customer Happiness Index Journey…..being the first one is not easy
Approach Methodology
3 7 Categories Network Experience variables 1 Implementation • Daily consistency Rehab Planning & Concept Dec 19 Execution 1. Stability and Quality of • Most current stability Development Line • Network Outage duration March - Dec 20 July- Aug 19 4 • Quality of connection . Progress & KPI’s 2. Speed / Data Rate • Actual data rate vs. Subscribed rate in % Jan – March 20 8 Achievement • Number of Technical complaints • Lead time to resolve complaints FY ’20 3. Problem Resolution Dec 20 • Existance of repeated complaints • Existance of Denied problem rectification
4. Profile Configuration • Data profile at Port level match subscribed rate 2 Outcome Framework 6 Development Initiatives for CHI Score Sept- Oct 19 Improvements Change% 71.6 Operational Highlights: Retail Segment 5 March –April 20 Sub Heading 63.5 Stable Lines
Monitoring &Tracking +26% Key Jan – Dec 20 Churn rate -26% 8 pts
FY '19 FY '20 78 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
Work From Optimized Closure of CC Home for headcount location ~ 90% work by 5% 1/4 force
Uninterrupted Space utilization for contact center Reduction in support during other OPEX COVID-19 strict revenue
lockdowns streams Key Operational Highlights: Retail Segment
79 80 Key Operational Highlights: Retail Segment Focus on key areas IMPROVEMENT Resource PROCESS Human to improve Operational KPIs Online visibility visibility afterMSAGsDCs Online / of Ensured highly equipped field staff field equippedhighly Ensured Improvedstructure& commission Trackinguninstalled each of order Induction of 600 TPIs & 400 FSAs& 400TPIs 600 of Induction Pendingmanagement process other incentivesother for stafffield RegularTraining programs proper revampingproper improvement IMPROVEMENT NETWORK QUALITY Pricing Rehabilitation in small pockets& Area wise customizedpackages 24K new dry pocketnew dry 24K lines Aggressive price moves price Aggressive Dry Areas Dry Resultantly FBB sales, churn rate and net adds improved Consistently +ve net adds since last 9 months
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 44 45 42 42 42 38 43 44 39 40 39 40 41 42 36 1,395 1,405 1,364 1,375 1,386 32 1,361 1,348 1,339 1,341 1,342 1,351 1,358 27 27 24 25 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec FTTH DSL Net churn rate improved from 3.1% in Jan 2020 to 2.2% in Dec 2020 ~4.5% Price change helped accelerate growth 8% Churn (‘000) FBB ARPU (PKR)
Performance Dec ’20 vs Dec 1,649 1,653 1,658 1,653 1,654 ’19 47
1,578 Exceptional Revenue Revenue Exceptional 42 1,570 1,569 1,558 1,567 1,546 1,549 36 36 35 33 Key Operational Highlights: Retail Segment 32 33 32 32 33 28
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
81 Key Strategic Accomplishments in 2020 by Business Services 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 and Mobily KSA 2. First ever managed datacenter 2. IP Bandwidth upgrades with Telenor, 2. Start of transit services with China contract in Pakistan (BoK) SCO and Cybernet. Telecom & China Unicom 3. Deployment of Cloud Campus 3. Gwader premium fiber connectivity 3. Bandwidth capacity contract in Solution at large engineering deals with Zong & Telenor Afghanistan. university. 4. Migration deals of MSC sites with 4. Telenor Bank banking cloud & Telenor & Zong
virtual datacenter contract.
Operational Highlights: Business Segment Key
8282 83 Key Financial Hi g hl ights : Business Segment . . . . Business revenuehas crossed The contribution to of Services the Businessoverall PTCL increased the revenue The Digital Services Internationalalso showed services a growth of Carrier& Wholesale grew Services Note:% variance for each aresegment for 2020 vs 2019 Services Services sustainedgrowth despiteCovid - 43 growth growth to % in datacenter& ICT sales 11 4 % from % 6 % in 5 % 2019 . Int'l Business 2018 27.1 27.1 10.6 10.6 9.5 9.5 6.9 6% C&WS 2019 28.7 28.7 10.4 10.4 11.0 11.0 7.3 7.3 Digital Services 6.2 % 2020 30.5 30.5 10.9 10.9 11.4 11.4 8.2 8.2 Total 11 4% 5% % Impact of Covid-19 on topline mitigated through additional cost optimization measures of PKR 2.7 B.
Major cost saving initiatives: Measures • CPEs - Use of refurbished CPEs & price COVID 19 Impact on Revenue: negotiations • HR Initiatives – No Salary increment, freeze on
Optimasation Hiring • COVID-19 impacted both PTCL and • Fuel & power - Use of alternate energy sources Ufone the combined effect on both (solar) and pilferage control OPCOs revenue was ~PKR 3B. • Network maintenance cost – Asset base • To mitigate this impact strict cost reconciliation, use of internal resources, SLA & saving measures were adopted scope optimization
19 Impact and Cost • Doubtful debts – Change in credit management - policy, churn improvement & better recoveries
COVID from defaulters
84 Synergy Projects
Sites in close proximity between Ufone VSAT links acquired through PTCL satellite 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 currently provided by Huawei Contracts signed with suppliers who Study was run jointly by Ufone & PTCL work with distribution companies for Technology team to insource the bill corrections and meter services within PTCL Group by PTCL Comm. replacements Highlights of Group SynergyNon-telco
team Power Key
Re location of offices / sites from SMEs will be targeted with joint product outside to within PTCL Group bundles comprising of PTCL + Ufone+ Space Solutions Optimization SME
85 PKR 1.4Bn savings targeted for
Synergy Initiatives in 2021 Key Highlights of Group Synergy
86 Strategic Priorities / Way Forward
. 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 rollout FTTH & increase . Convert 100% of the customer market share acquisition and loan application . Aggressive subscriber acquisition to process to our Digital Loan . Increase xDSL sales via digitization increase market share and technology improvements Acquisition Application.
. Continue to sweat existing FWA . Expand MFS business; focus on . Launch of Incremental Housing assets acquisition and transaction volume Finance increase . Develop a unified product portfolio . Launch of Mortgage/Housing within Business services to enhance Finance. revenue growth . Scaling up International Remittance
Strategic Priorities / Way Forward portfolio and partnerships.
87 Q&A 6
Mobily Transforming
Salman AlBadran For the Future Chief Executive Officer – Mobily Macro Environment| KSA economy is a key market
GDP 2020* (nominal) GDP Growth 2021** 793 BN (2019) th 786 BN (2018) 19 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 Central Dept for Statistics & Information 01/2020, 2021 Projected Real GDP, January 2021 World Economic Outlook (% Change), International Monetary Fund (IMF), https://www.imf.org/
TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY FEBRUARY 23, 2021 9090 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 sector
TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY FEBRUARY 23, 2021 9191 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 Infrastructure • National Roaming for Mobile services Sharing • Fixed Number Portability (FNB)
TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY FEBRUARY 23, 2021 9292 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 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 MARKETS DAY FEBRUARY 23, 2021 9494 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 MARKETS DAY FEBRUARY 23, 2021 9595 Achievements | FTTH
FTTH Sales Achieved highest yearly growth in FTTH Growth base +37%
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 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 FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY FEBRUARY 23, 2021 9797 Achievements | Technology – Mobile
Mobily Combined Overall Speed Selected Cities Riyadh Jeddah Mobily Combined Overall Speed 2020
+84% +96%
J F M A M J J A S O N D J F M A M J J A S O N D +73%
Dammam/ Khobar Metro Area Makkah
+111% +106% J F M A M J J A S O N D J F M A M J J A S O N D 2019 2020
TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY FEBRUARY 23, 2021 Source: Ookla. Download speed. Speed shown in MbpS 9898 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 FEBRUARY 23, 2021 9999 Achievements | Technology – IoT #1 1.2 Years duration 99.97% Completed “Smart meter” project is real-world application of IOT 12 Years 98% Completed
Mobily part of the biggest Narrowband IOT smart 10 Years meter project in the Middle East 70% Completed
5 Years Project completed in record time 27% Completed
Project puts KSA in world leader position 9 Years 20% Completed
TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY FEBRUARY 23, 2021 100100 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 skyrocketed 2019 2020
TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY FEBRUARY 23, 2021 101101 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) in the Middle East
TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY FEBRUARY 23, 2021 102102 Achievements | Awards
TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY FEBRUARY 23, 2021 103103 Key Financial Highlights | Resilient Revenues and Strong EBITDA Revenues EBITDA and EBITDA Margin (In SAR Million) +4.4% (In SAR Million) +8.2% 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 increased by 8.2% versus 2019 compared to 2019 as a result of the following: . The YoY EBITDA growth is driven by Mobily’s efficiency in o Growth of data revenues and FTTH active base managing its operations and better revenue mix and o Growth in Business Unit, wholesale revenues topline performance improvement o Increase and improvement in subscribers base . Growth in revenues translate to the improvements in . That marked the highest revenues levels in the past five EBITDA levels to achieve the highest level of EBITDA in years the past seven years
TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY FEBRUARY 23, 2021 104 Key Financial Highlights | capex intensity and operational cash flow growth Operational Cash Flow (EBITDA – CAPEX/ CAPEX to revenues % CAPEX) (In SAR Million) +1.2% +17.0% 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% to reach SAR 2,792 million . Operational Cash Flow (EBITDA - CAPEX) for 2020 versus SAR 2,760 million in 2019 and the CAPEX intensity increased to SAR 2,558 million or 17% compared to 2019 ratio (CAPEX to revenues) at 20% due to the topline growth and continued efficiency in . CAPEX continuity reflects Mobily’s commitment to invest in the operational cost management infrastructure and improve the quality of service
TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY FEBRUARY 23, 2021 105 Key Financial Highlights | Balanced Net Debt levels -0.2% 11,288 10,626 10,602
Net Debt and Net Debt 2.49x /EBITDA 2.45x 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’s ability to reach healthy levels of its net debt was reflected in the decrease of financial charges for 2020 to reach SAR 561 million compared to SAR 929 million in 2019; representing a decrease of 39.6%
Pre-IFRS16 Net Debt/EBITDA TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY FEBRUARY 23, 2021 Pre-IFRS16 Net Debt 106 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 and operational development . The net profit evolution is mainly due to the following: o Topline performance improvement o Strong and healthy EBITDA o Decrease of financing charges
TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY FEBRUARY 23, 2021 107 Outlook | GAIN Strategy
Digital Telco
Integrated Telco
Mobile Centric
2019 2020 Going forward
TRANSFORMING FOR THE FUTURE | ETISALAT CAPITAL MARKETS DAY FEBRUARY 23, 2021 108108 Q&A Break 7
Etisalat UAE B2C
Khaled Elkhouly Chief Consumer Officer – Etisalat UAE 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 population %, based on UAE Central Bank’s latest forecasts % of decline, as per Oxford Economics NON-EXHAUSTIVE 1.7%
KSA Bahrain Qatar Oman UAE
1.6% 2.3%
Market trends 3.0%
4.5%
-6.0%
2019 2020e 10.1%
112 Source: UAE Central Bank; Oxford Economics …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 average change across workplace, public transit, grocery & pharmacy, retail and recreation
Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20
-16% -18% -18% -20% -23% -22% Market trends -25%
-32% Considering UAE’s high Fixed Broadband penetration and Wi-Fi availability, the decline in mobility levels is primarily affecting the mobile telecom market -45%
-55%
1 Baseline is calculated as the average value for 3rd Jan– 6th Feb’20 113 Source: Google Mobility reports 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-EXHAUSTIVE
Social responsibility Commercial Operational
Zero-rated access to Free mobile data for students Remote customer care & re- educational URLs purposing of store personnel
Free access to Madrasa Freedom postpaid plans Mobile app recharge promotions
platform on eLife promotion 19 related initiatives
- Free access to remote learning Free upgrade on eLife Unlimited “Stay home” offers with Smiles apps plans
COVID Network name change to Free content (VOD, StarzPlay, Extra cashback with Smiles “Stay home” Switch TV, OSN)
No disconnection due to non- ICP 2 months free Free international remittance payment promotion services via E-wallet
114 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
Online Comms Gaming
Payment Dining & Shopping
Consumer 960 Strategy Music Movies & Series
Experiences for everyone, on every screen
115 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
B O L D
Blend Lift Optimize Develop core & new one-to-one internal people’s services and experiences operations to talent to enhance and drive achieve cost thrive in the business emotional efficiencies digital age
resiliency engagement Consumer 960 Strategy & BOLD Framework Building blocks of the ‘960’ strategy
116 …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
Transformation of Value proposition B O L D
Core Marketplace Adjacent • Further enhance • Enable new use cases & services, our competitive Fintech Content edge powered by aimed at network unlocking new Growth enabler monetization
Strategy & BOLD Framework superiority in order to sustain avenues and
market & value accelerating 960 960 share leadership growth in Etisalat “share of Insurance ICP moments”
Smart Consumer Living
117 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
Unlimited local & international calling
Extra Roam like home (allowing usage of your minutes & data abroad) telecom benefits Carry-over of unused data to next month
UAE WiFi hours Key 2020 Highlights
Smiles Buy 1 Get 1 subscription Digital benefits Switch TV subscription
118 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 B O L D Expansion of Digital Services – eWallet
Merchant network
# of merchants ~3.3x 6,260
1,900
Dec-19 Dec-20
Agent network
Key 2020 Highlights # of locations +21% 6,330 5,250
Launch of international remittance services remittance international of Launch
Dec-19 Dec-20
119 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% Launch of a block-chain powered Expansion of Smiles into the 2.27 rewards exchange feature Online Food Delivery space 1.98 1.52
Dec-18 Dec-19 Dec-20
Smiles Partners
Key 2020 Highlights # of partners +48% 1,018 690 350 Dec-18 Dec-19 Dec-20
120 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, %
+2.3 p.p. +5% 60.9%
58.6% Key 2020 Highlights
Dec-19 Dec-20 Dec-19 Dec-20
Source: Financial statements 121 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
+3%
Highlights
2020 2020
related Campaigns related
19 19 -
Key Free On Demand movies Free Starz Play COVID
Dec-19 Dec-20
122 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 position as a leading electronics provider B O L D
5G-enabled devices Upgrade Anytime Portfolio expansion
Non-exhaustive Non-exhaustive Key 2020 Highlights
One of the best upgrade programs in the world, allowing customers to enjoy a free upgrade to Apple’s new generation phones 90 days from the subscription date
123 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
Highlights
2020 2020
“Online “Online is better”
Educational Educational Campaigns Key
o Adding more than 80 features and enhancements to improve the digital experience o Increasing the range of plans offered (e.g. bitstream plans)
o Providing tailor-made, personalized notifications on the website for cart and page drop-off building
Capability o Extension of available payment methods (e.g. eWallet, bank transfers and auto-pay without login) 124 …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 # of sales via digital channels
2x 23%
21% Key 2020 Highlights
Website Mobile App Dec-19 Dec-20
125 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% Scaling of AI powered VA to cover new segments (e.g. Emirati) & expansion into 2019 2020 digital (e.g. Smiles app) as well as non- digital channels First Call Resolution
Key 2020 Highlights (e.g. 800101) % +2% 84% 82%
2019 2020
126 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
Click & Collect – Device & Accessory Sales
Instant Self Check-out
Self Service Kiosks – Non-Sales Transactions
Key 2020 Highlights Interactive Hero Devices Table
Product Experience Areas
Omni-channel experience
ILLUSTRATIVE Personalization
127 …counting 13 stores till date, aimed at providing a brand-new retail experience with strong focus on self-service
O Retail – Launching our next-generation digital concept store (2/2) B L D NON-EXHAUSTIVE
Mirdif City Center Galleria Al Khalidya mall
Dubai Mall Arabian Center Nadiya Key 2020 Highlights
128 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…
L CVM – Machine Learning & Scaling up of CVM capabilities B O D
Machine Learning driven # of CVM campaigns launched automation in CVM Monthly average 2.5x2.5x Recommends 1,250 Predicts 1 and develops customer campaigns behavior 2
500
Key 2020 Highlights 260 3 135
Learns & adapts, based on past outcomes 2017 2018 2019 2020
129 …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” Key 2020 Highlights
130 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
Index points +3 points
Our continuous focus on customer experience and further acceleration of our digital footprint has played a pivotal role in winning customers’ hearts and minds, putting Etisalat in the top decile of telecom operators
globally Customer Experience Overview
Dec-19 Dec-20
131 Source: Internal studies; Kantar 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 Key performance highlights
132 Source: Ookla …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 Key performance highlights
133 Source: Brand Finance 8
Etisalat UAE B2B
Salvador Anglada Chief Business Officer – Etisalat UAE 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
Data Needs Discounted Add-Ons
Mobile Plans Double Data & Carry-over Mins
Easy Prepaid Special Promo
Team Meetings Free CloudTalk
Q1’20 Q2’20 Q3’20 Q4’20 Business
Digital Platforms Roaming Consumption (Mn minutes)
Telemedicine platform Supporting 30+ Testing Centers -71%
AI & Safe city platform +15% +1%
Q1’20 Q2’20 Q3’20 Q4’20
135 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 the country
COVID-19 Outbreak Increased Company Efficiency Programs (Dismissal, Lay Offs, Terminations) -6.0% Oil Price Pressures 2019 2020 2021 Companies Going Out of Business & Exiting the UAE
Central Bank of UAE International Monetary Fund Business New Technology Acceleration Coopetition
Multicloud Collaborative Tools Network Based Software
OTT Hyperscalers
5G Artificial Intelligence
136 . 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
SMB SMB Bundles Business Edge
Digital
Disrupting Technologies First Inorganic Move Regional Expansion Business Transformation Digital Channels Expansion Full Internal Digital Transformation Virtual Agent contact center
Collaboration Business Design Studio Agile & Collaboration
ICT/ Digital Contribution Customer Experience (TRIM)
+12 +34 21% 102 68 9%
137 2016 2020 2016 2020 In Mobile we continued evolving our product portfolio and build key business enablers to maximize value
Portfolio Evolution PlatformPlatform KeyKey enablers Enablers
Preserve the value of data in our plans to get Create stickiness and differentiation Full control, efficiency & agility ready for VoIP Pricing Office • Full control over offer approval to Carry-forward plans Mobile Hub reduce time to market for Enterprise, Government & SMB segments
83% 128 87,000 renewals without Contracts Lines Go Digital price erosion Unlimited Voice plans • App Registrations +310K • B2B Portal Registrations +55K
Mobile Service
Business Center Digital Care
Bespoke offers • 100% Smaller SMB’s deflected to Virtual Agent Introduced in Q4 2020, will be extended to the whole customer base 20% active customers
Net MNP Evolution (‘000) Customer base Evolution (‘000) 144 134 124 Cumulative Net MNP +3% Net MNP 10 9 10
138 2018 2019 2020 2018 2019 2020 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% BUSIN E SS • Video Surveillance • Cloud Firewall 8.2% SMART • Internet Bundles EDGE SECURITY & • Endpoint Security 50.0% CONNECTIVITY ANALYTICS • Managed Wi-Fi • Mobile Security 100.0% 91.8% UNIFIED BUSINESS • Devices 50.0% • Cloud Talk COMMUNICATIONS DEVICES • Device Management • Managed Services
OFFICE ONLINE 2019 2020 2021F 2019 2020 2021F • Office 365 • Online PRODUCTIVITY MARKETING Business • VAT Filing Marketing • Digital Signage Business Edge Legacy Bundle
We will deliver 100% digitized & verticalized solutions to Business Edge Digital Services VOA Digital Add Ons cover all Business needs (Mn AED) 2020
105K licenses 259% Office 365
Online Marketing 797 campaigns
VSaaS 522 sites
Azure 100 VMs 2019 2020 2021F 139 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%
ICT 63%
Business 2018 2019 2020
Key References
Extending Cloud Connectivity to Hyperscalers: Cloud Express & Cloud Connect
140 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
2.2Bn2.2Bn Total Contract Value (AED) Data Center & TCV Cybersecurity IoT & AI Digital Industries Cloud
Regional 2019 2020
Business Subsidiaries
Key References 2020
Etisalat Digital KSA
141 142 Business cloud hyperscalers We have acceleratedour Cloud & CenterData in the regionin the and the migrationof enterprises and government tothe business business Multicloud Data Center Capabilities Center Data From 24 From to 50 MW Boost Data Center Capacity Portal Al & Ain Ibn Underway: Data NewCenters in 2020 Batutta (Q withentrance the 1 ) Professional Professional & Services Managed Etisalat TechnologyServices Focusing Focusing on Multi Hyperscalers Hub Hyperscalers of - Cloud, 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 Trust Security Orchestration Automation & Projects Security Solutions Response & Projects
Data Protection & Business Digital Forensics & Incident Resiliency Response 47% YoY 140% YoY Secure Managed Cloud Security 24X7 Threat Monitoring, Detection & Revenue Growth Secure Cloud for Web, Email, EBITDA Growth Services Services Response Mobile & Casb *Proforma Artificial Intelligence & Machine Secure Access Service Edge Learning (SASE) Telco Powered Security Services
Managed Threat Intelligence Digital Risk Protection Business 450M AED Total Contract Value Signed
Cyber Security Assurance Services Planned
HelpAG Integration – Completed in less than 8 months
Resources Tools, Assets & Sales Teams Transferred Marcom Legal, Finance, & Operations Aligned Completed Aligned Governance Completed
143 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 UrbanUrban Intelligence Intelligence
First 5G Smart District Smart City Autonomous car Logistics Energy Smart Stations Applications Business Value Connected Car
Intelligent
AI Algorithms Information Safe City Business IoT Platform Information
Oyoon Hassantuk
5G IoT Data ++ Connectivity IndustrialIndustrial IoT IoT
IoT Edge Data
Smart metering Connected worker
144 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
Abandoned Objects Overcrowds Driving behavior Wrong Way B&W Listing
Correlating Events
Business EVC Platform
Face Recognition Plate Recognition Behavior Analysis People Counting Heat Mapping
Running Advanced Analytics Edge Touristic areas Airports Roads Public Transport Shopping Areas
Gathering visual Other Potential information Engagements Model for Modern Safe City
145 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 1 October 2021 – 31 March 2022 Telecommunications Digital Services Volunteers Partner Partner Partner
Official Premium Telecom Infrastructure System Integration & & Services
Partner Digital Applications Business Expo 2020 Site Readiness
Telecom Infrastructure & Operations All key critical milestones delivered (incl. system launch of fixed & mobile network)
Cloud Applications on AWS migrated successfully & Disaster Recovery Tests conducted successfully. Hosting infrastructure optimized to run at minimal capability till Q1’21.
Applications All applications incl. ticketing soluton are live. Remaining scope incl. Mobile App to be rescheduled to start in 2021 146 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 “Accelerating Abu Dhabi’s “Design the future government of the digital transformation” campus experience” Design Thinking future” Workshops held in 2020
ADDA ADDA ADDA
“Redesign the Telehealth “Redesign the visitor “Design the ideal Co- Creation #FutureNowCalls MOE Tutoring experience” experience” CURRENTLY ONGOING Marketplace”
Lab Programme Business #FutureNowcalls Programme
OngoOngoinging Calls Calls Strategic Partners
Al Fire Prevention IoT Partnership Open Innovation 12 Programme Center Kubernetes as as Service FutureNow challenges run in 26 180 2020 Internet of Robotic Things IoT companies onboarded Visits during 2020
Mobile Banking & Credit (Consumer)
147 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 & changing the way we work
pillars internal processes our sales Business
Orders to be raised through Digital payments Reduction in call landing Digital Channels allocation to agents
2020 55% 85% 90% 40% 67% 35% Achievement 20% 16% 11%
2019 2020 2021T 2019 2020 2021T 2019 2020 2021T 148 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% ’ 293K 218K
148K 161K
2019 2020 2019 2020 2019 2020 2019 2020 Business Virtual Agent Robotic Process Automation
100% 71% 141 171K of SMB Unmanaged Successful Robots Deployed Man Hour Saved Segments are now VA Transactions handled through VA
2020 FY 2020 FY
149 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
delivering superior customer experience Business “Business Edge” will allow us to become a one stop shop for SMBs delivering 100% digitized & 3 verticalized solutions from the Cloud
4 Etisalat Digital has consolidated as Etisalat’s engine of growth and we will accelerate further through geographic and inorganic moves
150 Q&A 9
Closing Remarks
Hatem Dowidar Chief Executive Officer - Etisalat Group