Annual Report 2020 Contents: 02 Strategic Report 02 Introduction 04 Vision, Mission & Values 06 Annual Highlights 08 Board of Directors 12 Chairman’s Statement 18 Executive Management 22 CEO Message 28 BNET CEO Message 30 International Investments 32 Subsidiaries and Affiliates 38 Corporate Social Responsibility 42 Human Resources Report 46 Sustainability Excellence 60 Corporate Governance
80 Consolidated Financial Statements
81 Chairman’s Report 83 Independent Auditors’ Report to the Shareholders 87 Consolidated Statement of Financial Position 88 Consolidated Statement of Comprehensive Income 89 Consolidated Statement of Cash Flows 90 Consolidated Statement of Changes in Equity 91 Notes to the Consolidated Financial Statements 106 Supplementary Disclosures Related to the Impact of Covid-19
Contact: Office of the Registrar: Noora Sulaibeekh Bahrain Clear, Bahrain Financial Harbour Board Secretary Harbour Mall – 4th floor, P.O. BOX 3203, P.O.BOX. 14, Manama, Kingdom of Bahrain Manama, Kingdom of Bahrain Tel: +973 17884485 Fax: +973 17914988 Tel: +973 17108833 Fax: +973 17228061
Scan the QR code to view [email protected] [email protected] 2020 Annual Report online www.batelco.com www.bahrainbourse.com His Majesty His Royal Highness King Hamad bin Isa Prince Salman bin Hamad Al Khalifa Al Khalifa
The King of Crown Prince, Deputy Supreme the Kingdom of Bahrain Commander and Prime Minister of the Kingdom of Bahrain BATELCO ANNUAL REPORT 2020 INTRODUCTION
INTRODUCTION
Always connected
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Serving our customers and the community is embedded in our corporate values, and throughout the past extraordinary year, we took steps to continue serving our customers in the best ways possible, while supporting national initiatives in the fight against the Coronavirus pandemic.
To continue delivering to our customers with convenience and ease, we fast-tracked our digital transformation journey and activated new initiatives. A big part of delivering a great experience is to have excellent systems and processes, and during 2020 we completed crucial IT system upgrades, designed to help us serve our customers better, leading to faster transaction times and a superior customer experience. To help with the increased dependence on remote learning and working Batelco boosted the internet speeds for fiber customers, by up to 5 times from July 2020. The benefit delighted customers and also contributed to Bahrain’s improved ranking by over 30 places, for fixed internet speed, according to Ookla, the global leader in fixed broadband and mobile network testing applications. Batelco built on its successful 5G journey and achieved a great “first” with the announcement of national 5G coverage, reaching 95% of Bahrain’s population across all 4 governorates and positioning Bahrain among the leading countries in the world for national 5G coverage. Among Batelco’s initiatives to support the community, was a contribution of BD3.5M to the Feena Khair nation-wide efforts to combat the Coronavirus and the provisioning of 6000 face masks for distribution in the local community through a collaboration with Bahraini Productive Families. Batelco’s efforts throughout the year have contributed to market confidence, which is reflected in increased share prices from the middle of 2020 ongoing, with the Company’s share price reaching its highest levels since 2011. This is particularly gratifying given the extraordinary times that we have experienced during 2020 due to COVID-19. 2020 was an extraordinary year which challenged all our previous experience and plans; however, we are very pleased with all that we achieved while delivering strong financial results and improved value for shareholders.
03 BATELCO ANNUAL REPORT 2020 VISION, MISSION & VALUES
VISION, MISSION & VALUES
BATELCO’S VISION Be a leading provider of innovative digital services and connectivity to empower people, enable businesses and enrich society.
BATELCO’S MISSION To serve and inspire our customers by building, operating and investing in digital services, forefront technology and connectivity.
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VALUES – iCARE Our values define how we work together as a team, how we serve our customers and guides our behaviour as well as decision making.
Innovative Accountable Empowered
Competitive Responsive
05 BATELCO ANNUAL REPORT 2020 ANNUAL HIGHLIGHTS
ANNUAL HIGHLIGHTS
Batelco announced a 10% increase in net profit, reaching BD56.7M for the full year 2020, as EBITDA40 Margin compared to % BD51.6M in 2019
% Net15 Profit Margin
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Batelco ended 2020 with solid financial results.
Operating Profit Consolidated Net Profit BD81.1m BD56.7m (2019: BD75.5m) (2019: BD51.6M)
Gross Revenue EBITDA BD387.3m BD154.7m (2019: BD401.5M) (2019: BD141.7 M)
Net Assets Cash & Bank Balance BD512.1m BD195.3m (2019: BD513.4M) (2019: BD175.5M)
Earnings Per Share EBITDA Margin Net Profit Margin 34.2fils 40% 15% (2019: 31.2 FILS) (2019: 35%) (2019: 13%)
07 BATELCO ANNUAL REPORT 2020 BOARD OF DIRECTORS
BOARD OF DIRECTORS
Shaikh Abdulla bin Khalifa Al Khalifa Mr. Raed Abdulla Fakhri Chairman Deputy Chairman
Batelco’s share price which during 2020 reached its highest level since 2011 remains strong and reflects the confidence that the market and investors have in Batelco.
Mr. Abdulla Abdulhameed Alhammadi Mr. Abdulla Abdulrazak Bukhowa Director Director
Profiles of the Board of Directors are on pages 41-44 Corporate Governance.
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Mr. Ahmed Abdulwahed Abdulrahman Shaikh Ali bin Khalifa Al Khalifa Major General Ali Saqer AlNoaimi Director Director Director
Ms. Fatema Ghazi Alarayedh Mr. Jean Christophe Durand Mr. Khalid Hussain Taqi Director Director Director
* The below members have served until 25 March 2020 Rear Admiral Yousif Malallah AlSabt - Deputy Chairman Mrs. Khulood Rashid Al Qattan – Director Mr. Arif Haider Rahimi - Director Mr. Ahmed Ateyatalla Al Hujairy – Director Mr. Oliver Finn McFall – Director
09 BATELCO ANNUAL REPORT 2020
A modern workplace
Work is no longer confined to the office. The latest communication technologies ensure work commitments are met, regardless of location.
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Powering a connected world.
11 BATELCO ANNUAL REPORT 2020 CHAIRMAN’S STATEMENT
CHAIRMAN’S STATEMENT DELIVERING VALUE FOR OUR SHAREHOLDERS REMAINED CENTRAL IN 2020
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31 December 2020. The Company ended the year with substantial cash and bank BD56.7m balances of BD195.3M (US$518.0M) and a Consolidated robust Net Debt to EBITDA ratio of 0.7x. Net profit In line with increasing shareholder value and delivering excellent returns, Batelco increased its interim dividend by 35% from 10 fils to 13.5 fils earlier this year. 2020 also marked significant increases in Batelco’s share price, which reached its highest level since 2011. Proposed Appropriations Based on the financial results, the Board of Directors has recommended for the approval of shareholders, the following We are committed to applying appropriations for the year 2020. best practice corporate governance to support BD millions 2020 2019 Batelco’s strategy and achieve Final cash its vision while ensuring dividends 27.44 29.11 that shareholder value is proposed maximised.” Interim cash 22.36 16.55 Abdulla bin Khalifa Al Khalifa dividends paid Chairman of the Board Donations 4.39 1.29 Transfer to - 0.23 statutory reserve
Batelco is committed to consistently delivering attractive returns to its shareholders. Accordingly, the Board of On behalf of the Board of Directors, Directors has recommended a full year it gives me great pleasure to present cash dividend of BD49.8M (US$132.1M), th the 39 Annual Report of the Bahrain at a value of 30.0 fils per share to be Telecommunications Company BSC and agreed at the Annual General Meeting, its subsidiaries and affiliates (Batelco), of which 13.5 fils per share was already st for the year ended 31 December 2020. paid during the third quarter of 2020 Batelco achieved strong financial results with the remaining 16.5 fils to be paid for 2020 with a 10% year-over-year following the AGM in March 2021. increase in net profit attributable to Batelco swiftly adapted to the equity holders of BD56.7M (US$150.4M). unprecedented circumstances of 2020 The 2020 results reflect the company’s to achieve the strategic objectives commitment to achieve its strategic of the core strategy, which include a objectives and effective cost focus on cost containment, resulting management while adapting quickly to in 10% YoY decrease in operating costs the challenges faced during the year. and contributing to a 10% increase in Whilst gross revenues of BD387.3M net profits over 2019. The efforts are (US$1,027.3M) are 4% below 2019, the also reflected in the improvements in company reduced its operating costs by Operating Profits and EBITDA which 10% resulting in EBITDA of BD154.7M increased by 7% and 9% respectively, (US$410.3M), 9% above the prior year year on year. and with a healthy margin of 40%. During the year key investments were Batelco’s balance sheet remains made in the further development of strong with total assets of BD992.2M 5G, which we activated across all four (US$2,631.8M) and net assets of governorates of Bahrain covering BD512.1M (US$1,358.4M) as of 95% of the nation’s population. We
13 BATELCO ANNUAL REPORT 2020 CHAIRMAN’S STATEMENT
CHAIRMAN’S STATEMENT (CONTINUED)
also launched our latest Tier III Data management and all team members Center, which is the largest enterprise who contributed to a successful year. Data Center in Bahrain. Going forward, Delivering value for our shareholders Batelco will continue to play its part in remained central in 2020 and we are providing innovative digital services. proud to announce increased EPS for This is in line with our vision and being the year. Batelco’s share price which a proud member of Team Bahrain, during year 2020 reached its highest following the directives of the Kingdom’s level since 2011 remains strong and fifth National Telecommunication Plan, reflects the confidence that the market and supporting the telecom sector in and investors have in Batelco. I extend accordance with the Kingdom’s vision for appreciation to our shareholders for the digital economy. putting their trust in Batelco’s direction Batelco places importance on and vision, and going forward it remains supporting team members and the a priority for us to achieve the best corporate culture, as a healthy work returns for them. environment reflects on the team’s As we move forward in 2021, we will performance. We have directed continue to adapt our plans to remain the management to launch several successful and achieve our goals. We programmes which are focused on are committed to applying best practice developing the work environment and a corporate governance to support high-performance culture, such as the Batelco’s strategy and achieve its vision Chairman’s Award. while ensuring that shareholder value As a result of these efforts, Batelco has is maximised. We have confidence been ranked the number 1 certified that Batelco’s management will make organization in the telecommunication every effort to achieve the set goals sector across the Middle East in 2020 and continue raising the bar to achieve as a great workplace, by Great Place to more success for Batelco and the Work® Institute Middle East, and we are telecommunications sector in Bahrain. immensely proud of this achievement. Auditors I take this opportunity to express my The Board of Directors will recommend sincere gratitude to His Majesty King the re-appointment of KPMG Fakhro as Hamad bin Isa Al Khalifa and His Royal Batelco’s auditors for the financial year Highness Prince Salman bin Hamad Al ending 31st December 2021. Khalifa, Crown Prince, Deputy Supreme Commander and Prime Minister, for the government’s tremendous support Abdulla bin Khalifa Al Khalifa towards the telecoms sector which Chairman of the Board has been instrumental in our ongoing Bahrain Telecommunications success. Company BSC I appreciate the contribution of the February 21st 2021 members of the Board who represent diverse backgrounds. Their strong commitment has been vital as we have worked together for the benefit of Shareholders and I would like to thank them for their input. On the same note, I offer my thanks to Batelco’s
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Batelco has been ranked the number 1 certified organization in the telecommunication sector across the Middle East in 2020 as a great workplace, by Great Place to Work® Institute Middle East.
15 BATELCO ANNUAL REPORT 2020
Creating a digital future
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Schools of the future
Traditional classrooms are making way for remote learning, allowing education to continue with students interacting one on one with their teachers and collectively with their classmates virtually.
17 BATELCO ANNUAL REPORT 2020 EXECUTIVE MANAGEMENT
EXECUTIVE MANAGEMENT
We maintained our investment in Mikkel Vinter Faisal Qamhiyah Chief Executive Officer Chief Financial Officer forefront technology, digital services and connectivity and are pleased with the progress made.
Abderrahmane Mounir Adel Al-Daylami General Manager Enterprise Division Chief Global Business Officer
Shaikh Bader bin Rashid Al Khalifa Bilal Adham General Manager Corporate Chief Marketing Officer Communications and CSR
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Buddhadeb Samanta Christopher Hild Faisal Al-Jalahma Head of Internal Audit Chief Strategy Officer Chief Human Resources Officer
Karel Staněk Maitham Abdulla Shaikh Mohamed bin Khalifa Al Khalifa General Manager IT General Manager Consumer Division Chief Digital Growth Officer
Noora Sulaibeekh Rashid Mohamed Saurabh Gupta General Counsel and Board Secretary General Manager Network Chief Technical and Information Officer
* Maha Abdulrahman served as GM Consumer Division until 1 April 2020.
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Enriching lives
Connecting the community with things that enrich lives, as the digital world reinvents our lifestyle, the way we learn & work, and our entertainment choices.
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keeping the community close
21 BATELCO ANNUAL REPORT 2020 CEO MESSAGE
CEO MESSAGE
During 2020, we changed the way we customers using the App. Additionally, operate to address the unprecedented as customers turned to digital channels, challenges due to COVID-19, including digital payments and refills showed fast-tracking digital initiatives to double digit growth rates. elevate the way customers are served, To accommodate the increased demand and enabling them to complete their on internet services, we upgraded fiber daily tasks remotely. speeds, by up to five times our customer Business Overview package speeds, at no additional cost, We maintained our investment in with this initiative contributing towards forefront technology, digital services Bahrain being highly ranked for fixed and connectivity and are pleased with internet speeds by Ookla, the global the progress made. We continued to leader in fixed broadband and mobile grow technologically with achievements network testing applications. such as National 5G activation across Commitment to Customers and Bahrain, covering 95% of the nation’s Community population. In addition to our role in providing We achieved another milestone with communication solutions for all our Data Center plans, by launching the customer sectors in Bahrain, Batelco largest certified enterprise Tier III Data continued to reach out to the Center in Bahrain. We look forward in community during 2020 through a 2021 to welcoming companies onboard, well-balanced CSR programme, with enabling them to focus on their core initiatives developed to support the business while we provide reliable, changing needs within the community. secure solutions, combined with round- the-clock customer support. Among other achievements, Batelco signed a partnership agreement with e-Boks, a Nordic provider of secure platforms and digital post-boxes to provide companies and public 5G authorities with a user-friendly platform coverage is available for digital communications. across 95% of Bahrain’s population Among the enhancements to meet our customers’ changing priorities, our new Batelco App was launched leading to over 100% growth in the number of
We changed the way we operate to address the unprecedented challenges due to COVID-19, including fast-tracking digital initiatives.”
Mikkel Vinter Chief Executive officer
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OUR STRATEGIC PLANS INCLUDE GROWING OUR REVENUES BEYOND OUR CORE CONNECTIVITY
23 BATELCO ANNUAL REPORT 2020 CEO MESSAGE
CEO MESSAGE (CONTINUED)
Driving digital growth will remain central to our plans moving forward, to meet the evolving requirements of consumer and business customers.
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Early in the year as the Coronavirus pandemic unfolded, we remained committed to stand with the government and the community, and as a proud member of Team Bahrain, Batelco supported the ‘There is Good in Us’ campaign with a contribution of BD3.5M. acknowledge and reward Batelco team members who demonstrate exceptional Our projects included enabling Bahraini performance and achievement through Productive Families to produce 60,000 the year. Three winners were announced face masks to support the families by our Chairman Shaikh Abdulla bin during these difficult times, with the Khalifa Al Khalifa and were presented masks distributed by the authorities with trophies and cash prizes. We truly where most needed. We also supported appreciate the Chairman’s commitment virtual educational programmes, in to our people in introducing this collaboration with partners such as prestigious awards programme. INJAZ and Brinc Batelco. Furthermore, we took the needs of small businesses Appreciation for Support into consideration, and provided 500 Batelco management and team of our SME customers with financial members rose to meet the challenges of support towards their fixed internet the past year and continued to give their costs for three months during 2020. best; I offer my personal appreciation to Our People each of them for their dedication. We place great emphasis on the needs I also offer my thanks to our Board of of our team members and during 2020, Directors for their ongoing support we invested much effort in keeping which has allowed us to push forward everyone engaged and involved in with confidence. the business and in creating a great On behalf of Batelco’s team members, work environment, while over 90% I would like to thank our customers for of the them worked remotely. One of continuing to choose Batelco products the initiatives was the introduction and services. We appreciate their loyalty of the Chairman’s Award, created to and will keep their needs foremost in mind during 2021. Looking Forward During 2020 we have learned the true meaning of a digital world by navigating the challenges of COVID-19 and driving digital growth will remain central to our plans moving forward, to meet the evolving requirements of consumer and business customers. Our strategic plans include the further digitization of the customer journey and increasing sales through our digital channels, and additionally, growing our revenues beyond our core connectivity, in digital sectors such as FinTech and GovTech. Our efforts are designed to support Bahrain’s telecommunications sector and the ongoing growth and development of a digital economy in line with Bahrain’s 2030 vision.
Mikkel Vinter Chief Executive Officer
25 BATELCO ANNUAL REPORT 2020
Enabling everyday tasks
Keeping everyone connected to each other to maintain their social bonds, safely and securely and to enable them to carry on with their daily lives
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Transforming the customer experience
27 BATELCO ANNUAL REPORT 2020 BNET CEO MESSAGE
BNET CEO MESSAGE BNET MARKS A NEW ERA IN THE TELECOMMUNICATIONS SECTOR
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Since our inception, our goal has been to contribute to accelerating the Kingdom’s digital growth and the resilience of its telecommunications sector and support our government’s futuristic vision to position Bahrain as a strategic regional hub for information technology. We aim to achieve this by developing National broadband connectivity to the highest standards and enabling a resilient digital telecommunications infrastructure built on secure foundations. We are also keen to use innovative technologies that follow the highest international standards in our operations, in order to maximize the efficiency and effectiveness of services we provide to our clients. This helps us on our mission to facilitate for We are keen to use innovative sustainable and effective competition technologies that follow the and encourage market adaptability. We highest international standards are focused on customer experience; our priority is to always cultivate strong in our operations, in order to and meaningful relationships with our maximize the efficiency and customers to ensure their continuous effectiveness of services we satisfaction. provide to our clients”. Moving forward Mohamed Bubashait BNET is working tirelessly on its NBN Chief Executive Officer, BNET roll-out plan, to achieve the goal of fiber coverage for 100% of all businesses and 95% of all households across the Kingdom of Bahrain. We have big plans for 2021, and as we prepare to finalize our legal and operational separation from Batelco, we are also devoting our efforts to launch major centres of excellence that meet world-class solutions and standards. These include a 2020 was an eventful year at Bahrain’s service management centre to provide National Broadband Network BNET customer services support to licensed and marked many achievements as we service providers in Bahrain, a networks progressed in the separation process operations centre to ensure the delivery of reliable and stable network services, from our mother company “Batelco”. and a cybersecurity operations center to September saw the complete protect our digital infrastructure. separation of BNET’s information systems technologies from Batelco’s A note of appreciation with the successful launch of both the On behalf of the BNET team, I extend our Operations Support System (OSS) and gratitude and appreciation to Batelco the Business Support System (BSS) Chairman Shaikh Abdulla bin Khalifa Al powered by Amazon Web Services Khalifa and our own Chairman Shaikh Ali bin Khalifa Al Khalifa and BNET Board of (AWS) cloud technology. This was in Directors. Their guidance and direction line with the requirements of the were instrumental to our success in National Telecommunication Plan and 2020. a significant milestone in the legal I take great pride in every single one of separation stage, establishing BNET our employees at BNET, as they are the as an independent entity with its own pillars of our success. And I look forward customer services and operations to continue working with the team to process management and reinforcing build BNET as a key contributor to the our role as the primary entity Kingdom of Bahrain’s transformation responsible for the Kingdom’s national into a robust and resilient digital broadband network operations, as economy. well as enhancing the quality and effectiveness of the services we Mohamed Bubashait provide to our customers. Chief Executive Officer BNET
29 BATELCO ANNUAL REPORT 2020 INTERNATIONAL INVESTMENTS
INTERNATIONAL INVESTMENTS
BATELCO’S OPERATIONS OUTSIDE OF BAHRAIN INCLUDE DIRECT AND INDIRECT INVESTMENTS ACROSS 12 GEOGRAPHIES, NAMELY JORDAN, MALDIVES, GUERNSEY, JERSEY, ISLE OF MAN, DIEGO GARCIA, ST. HELENA, ASCENSION ISLAND, FALKLAND ISLANDS, SAUDI ARABIA, EGYPT, AND YEMEN.
In 2020, the International operations contributed 53% to the Company’s revenues and 53% to EDITDA
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UMNIAH DHIRAAGU SURE GROUP Jordan Maldives
SABAFON ETIHAD ATHEEB BATELCO Yemen TELECOM Egypt Saudi Arabia
31 BATELCO ANNUAL REPORT 2020 SUBSIDIARIES AND AFFILIATES
SUBSIDIARIES AND AFFILIATES
Jordan Umniah
Ziad Shatara Chief Executive Officer
In 2020 Umniah launched Umniah, a 96% subsidiary of Batelco launched exclusive self-service kiosk the UWallet app and has established a strong presence in the machines that allow customers to make its Virtual Desktop Jordanian telecommunications market payments, renew subscriptions and offering high quality mobile, internet settle bills for their mobile and Internet Infrastructure (VDI), and enterprise solutions. The Company plans. a cloud-based computer continues to drive innovation and digital During the year, Umniah obtained ISO service that provides its transformation offering its customers 10001:2018 Quality Management – corporate clients with a comprehensive suite of products Customer Satisfaction certification, and solutions. 2020 marked the 15th a virtual working space becoming the first company in Jordan to anniversary of Umniah’s launch. that offers more flexibility receive this accreditation. The company than the traditional As a result of mandatory lockdowns also received the international ISO computer workstation. and the surge in network usage, 22301:2012 certification for managing Umniah expanded its network and business continuity. infrastructure, increasing the number Moving into 2021, Umniah will of towers. The company also continues continue to build on its achievements to expand its fiber optic services and has by maintaining its unwavering reached more than 250,000 households. commitment to digital transformation, In 2020 Umniah launched the innovation and cutting-edge UWallet App and its Virtual Desktop technologies that cater to the ever- Infrastructure (VDI), a cloud-based changing needs of its customers. computer service that provides its corporate clients with a virtual working space that offers more flexibility than the traditional computer workstation. The company also updated its cloud offerings with Private Server (VPS) and B2B services targeting SMEs on an even more secure, reliable and highly competitive Internet hosting platform. In another first for Jordan, Umniah
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Maldives Dhivehi Raajjeyge Gulhun Plc (DHIRAAGU)
Ismail Rasheed Chief Executive Officer & Managing Director
The Sri Lanka Cable (MSC) Dhivehi Raajjeyge Gulhun PLC speed data network in the country. landing in the Maldives (Dhiraagu), incorporated in the Maldives DhiraaguTV as the first IPTV services was celebrated in late in 1988 and listed on the Maldives Stock provider in the Maldives extended its Exchange, is the leading digital services service to 77% of national households. 2020, which will enhance and telecommunications provider The Sri Lanka Cable (MSC) landing in the network diversity and in the Maldives. The company offers Maldives was celebrated in late 2020, provide increased internet a comprehensive range of mobile, which will enhance network diversity capacity for the future internet, data and fixed line, TV and and provide increased internet capacity other services throughout the country. needs of the people in the for the future needs of the people in the Batelco acquired 52% shareholding of Maldives. Maldives. the company in 2013. Dhiraagu remained committed to The outbreak of COVID-19 global aligning its services to meet customer pandemic emphasised Dhiraagu’s needs with robust contingency and role in enabling communities, people business continuity plans in place. and businesses more than ever. With Extensive benefits across all services most people confined to their homes, were offered such as extra data and businesses having to limit their allowances, discounts, payment operations, the dependency and flexibility and many more to support demand for reliable communication the country. The company assisted the services, and digital applications have Government and authorities in their increased. The company enhanced emergency response in relation to the customer experience by further pandemic with setting up the required strengthening digital touch points and services for quarantine and isolation enriching Dhiraagu’s digital portfolio facilities and donating COVID-19 for consumers, businesses and sampling kiosks. communities. As a result of continued investment, high-speed fibre broadband is now available to 80% of Maldivian national households making Dhiraagu’s fibre broadband network the largest high-
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SUBSIDIARIES AND AFFILIATES (CONTINUED)
CIIM and SADG Sure Group
Ian Kelly Chief Executive Officer
Reflecting the Sure The Sure Group comprises of a number to complete by mid 2021. Additionally, Group strategy, 2020 was of geographically diverse operations Sure conducted a Fibre To The Home another strong year for which are wholly owned subsidiaries (FTTH) trial in Guernsey, a 5G trial in the of Batelco, acquired in 2013. Head Channel Islands and Isle of Man and saw the Enterprise segment quartered in Guernsey, the Group the 4G services on the new network in across the Group with provides telecommunications and Diego Garcia becoming highly adopted. accelerating revenue related services across the Channel FTTH investments in Guernsey will be growth driven by strong Islands, the Isle of Man and in the British accelerated over coming years. Overseas Territories of the islands of double-digit increases in Reflecting the Sure Group strategy, Ascension, Falklands, Saint Helena and cloud, security and data 2020 was another strong year for the Diego Garcia. centre services. Enterprise segment across the Group In Guernsey, Sure is the leading full with accelerating revenue growth service operator with market-leading driven by strong double-digit increases positions in fixed voice, mobile, in cloud, security and data centre broadband and Cloud services and the services. To further emphasise its prime competitor in both Jersey and Enterprise credentials Sure maintained Isle of Man. In the British Overseas its extended ISO27001 security standard Territories, Sure operates under accreditation, the strongest in this exclusive licenses with full feature respect in the Channel Islands and networks delivering voice, broadband maintained ISO22301 for business data services and in certain markets TV. continuity. 11 2020 was a year dominated by the In partnership with the Falkland Islands impact of the COVID-19 pandemic on Government Sure has executed an the seven island communities Sure upgrade to residential broadband with a serves. Sure’s investment in resilient doubling of backhaul capacity enabling and high capacity networks ensured a significantly improved customer that the company could meet customer experience. In Diego Garcia Sure’s demand which rose by more than 40%. newly launched 4G services were highly With reliance on telecommunications adopted by customers who enjoyed the networks more important than faster network and flexibility provided ever, Sure has continued to invest by mobile data. in its market leading capability. The company’s investment in its 100 Gigabit subsea network, which is set to more than triple internet capacity is on track
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YEMEN Sabafon, in which Batelco has a minority shareholding of 26.94%, is a GSM operator in SABAFON Yemen offering national coverage across the country. The company started its operations in 2001 with the vision to establish a strong, dynamic and flexible organization to serve and benefit the people of Yemen with the latest GSM technology and services. Sabafon has been operating in a challenging environment due to the existing political instability. Nonetheless, Batelco continues to believe that Sabafon has solid business fundamentals and will be in a leading position to seize opportunities once the geopolitical position improves.
SAUDI ARABIA Etihad Atheeb Telecommunications Company (Atheeb) was established in 2008 and is ETIHAD ATHEEB TELECOM a publicly listed company in the Kingdom of Saudi Arabia, in which Batelco holds a 15% stake. The company operates under the “GO” brand and has a broad portfolio of products and services for both business and retail customers including but not limited to VOIP communication solutions, high-speed data services, wireless broadband internet, fixed line telephony, hosting cloud solutions and enterprise connectivity services.
EGYPT Batelco Egypt is wholly owned by Batelco Group. The company was established in 2003 BATELCO EGYPT with a focus on providing end-to-end worldwide data communication solutions to corporates, multinational customers and global telecommunication providers. COMMUNICATIONS (S.A.E.) Over recent years Batelco’s global connectivity to Egypt has been upgraded significantly to accommodate the increasing demand to and from Egypt, allowing Batelco to secure several global contracts. Through partnerships and alliances with other leading providers Batelco is gaining strength in Egypt’s enterprise sector among local and multinational companies. Batelco Egypt is contributing towards Batelco’s strategy of building a cloud centric platform by introducing relevant services and enhancing its infrastructure. Such initiatives are serving to broaden the company’s portfolio, boost its competitiveness and enrich its service offerings in and out of Egypt.
35 BATELCO ANNUAL REPORT 2020
Elevated services for business
Businesses are becoming increasingly more reliant on digitisation, with access to the latest integrated solutions a priority to remain agile and competitive
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Driving innovative solutions for businesses
37 BATELCO ANNUAL REPORT 2020 CORPORATE SOCIAL RESPONSIBILITY
CORPORATE SOCIAL RESPONSIBILITY
Our Community Our Home Our CSR programme, NASNA, is carefully designed to create an impact that is relevant and sustainable. Our efforts are concentrated on 4 key pillars - Education, Beyond Batelco’s Health, Sports and Community, which are aligned with the United Nation’s focus on business and Sustainability Development Goals, in the areas of Sustainable Cities & financial performance, Communities, Quality Education, and Good Health & Well-Being, so that we the Company is contribute to a global campaign that is committed to its supported by many countries including Bahrain. role as a responsible We are very proud of our achievements during 2020 and are pleased to highlight corporate citizen. some of our initiatives in the following pages.
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CommunityCommunity BD3,711,68821%
YouthSport and Sports BD32%333,513
EducationEducation BD26%254,000
HealthHealth BD21%217,000
Financial support Speed boost for Small & Medium businesses for Fiber Internet customers
Batelco started to take serious steps In the beginning our biggest An agreement was signed with the in 2020 to address sustainability contribution was BD3.5 million to the Ministry of Sports to contribute to while contributing to the community Feena Khair campaign, launched by the 100 Playgrounds Initiative that to create a positive impact. A the Royal Humanitarian Foundation aims to establish 100 playgrounds for number of initiatives were put As partto of support our corporate the national social efforts responsibility, under various we were sports pleased activities to provide throughout in place that contributed to 28% BD4.5Mthe during leadership 2020 ofin Hisdirect Royal and Highness indirect financialthe Kingdom. support The to worthwhilenational and reduction in energy consumption social activitiesPrince Salman in a numberbin Hamad of Al areas Khalifa, such as health,programme education is the initiative and sports. of His at Batelco Headquarters in Crown Prince, Deputy Supreme Highness Shaikh Nasser bin Hamad Hamala. Furthermore, total water CommanderWe will and continue Prime Minister, our national roleAl Khalifa, and support Representative of His consumption decreased by 3.6% in and inin response continuing to the to directives do good for our belovedMajesty Kingdom.the King for Charity Work 2020 while the volume of recycled of His Highness Shaikh Nasser bin and Youth Affairs, Chairman of the waste-water has increased almost Hamad Al Khalifa, His Majesty’s Supreme Council for Youth and Sports. four-fold. Humanitarian Works and Youth Affairs Batelco also worked closely with the representative, National Security Batelco always works closely with the Ministry of Works & Social Affairs Advisor and Royal Humanitarian community and during 2020 engaged to support 30 Productive Families Foundation (RHF) Board of Trustees with strategic partners to contribute by enabling them to contribute to Chairman. As a national company, positively to the lives of people, as we the national campaign to combat we are committed to give something realised the importance of supporting the Coronavirus, through producing back to the Kingdom of Bahrain, which the community during COVID-19. 60,000 face masks for people in gave us a lot over the years. need, creating a shared value in the community.
39 BATELCO ANNUAL REPORT 2020 CORPORATE SOCIAL RESPONSIBILITY
CORPORATE SOCIAL RESPONSIBILITY (CONTINUED)
The small business sector was heavily programmes and be in touch with Programme (CPISP), which provides impacted due to the pandemic; their families during COVID-19, as they top educational, training, and cultural therefore, Batelco stood by its were receiving medical treatment in opportunities at leading universities customers and provided 500 SME’s hospital. across the world. with financial support towards their Education is at the heart of our CSR In realising the importance of core internet bills for three months, programme and we have enhanced subjects, across the fields of science, with an aim to lessen their financial our initiatives in this area in 2020 to technology, engineering, and burdens and provide them sufficient meet the unexpected challenges. mathematics, Batelco in collaboration time to adapt to the new challenges. with BRINC Batelco and Clever Play Batelco supported its customers in Batelco team members also launched the STEM Leadership times of high dependency on the played their part in supporting Summer Camp. The programme, internet by providing unlimited the community and in 2020 our which was held virtually, aimed at internet usage and free web browsing volunteers focussed on initiatives developing young leaders aged 15 on several educational sites. Fiber related to children. A fundraising to 22, and equipping them with the speeds were also upgraded by up to Walkathon was held at Batelco relevant skills, knowledge, and the five-times customers’ regular speeds, campus in Hamala, on Bahrain Sports required mind-set, to excel in the to help with remote learning and Day and the team raised an amount future business landscape. working from home. of BD4,480 which was gifted to Batelco’s most recent initiative Al Sanabel Orphan Care Society. To develop the talents of outstanding to support youth development, Bahraini students, Batelco continued The team also provided smartphones Elevator to Success, was launched with its support for the Crown and data chips to some children under in collaboration with INJAZ Bahrain, Prince International Scholarship the Dream Care Society’s umbrella, to Brinc, and Clever Play to prepare enable them to enjoy their favourite
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students for the Kingdom’s labour in the community while celebrating Other sports also feature prominently, market. The programme, which aims heritage. Equestrian events are including football which is one of at closing the skills gap between particularly important as they are an the most popular sports in Bahrain. graduates and employers, begins with integral part of the national identity. Batelco has always been a keen early engagement when the students supporter through sponsoring annual Accordingly, Batelco was proud to are in Grade 12 before they begin football tournaments such as the support major equestrian events their university education journey, Shaikh Nasser bin Hamad Premier during the year, including the second and focusses on entrepreneurial and League & King’s Cup for the 2019/2020 Bahrain International Trophy which IOT skills, providing mentorship, season, as it has a positive impact attracted the participation of several professional certification, and on-job on the community and the youth in of the world’s horse racing elite to the training. Bahrain. Rashid Equestrian & Horse Racing Club A major project that was completed in Sakhir. The annual event highlights The sport of cycling has grown in 2020 is the construction of a state- the importance of horse racing and enormously in recent years in Bahrain, of-the-art medical centre for the its strong connection with the rich with cyclists representing Bahrain Ministry of Health that shall serve the heritage of Bahrain. achieving much success. During 2020 community and enable access to free Team Bahrain McLaren become one of Additionally, Batelco supported the health care, helping to support the the most anticipated teams to enter Bahrain Royal Equestrian & Endurance aims of the government for the health the UCI World Tour, supported by Federation National Day Endurance sector. leading national companies including Ride Championship which took place Batelco. Batelco also continued its over a 120-Kilometre course at the commitment to national initiatives Bahrain International Endurance that aim to enrich the lives of the Village. youth and promote health and culture
41 BATELCO ANNUAL REPORT 2020 HUMAN RESOURCES REPORT
HUMAN RESOURCES REPORT
Our People Fostering a new mindset and corporate culture
Batelco has continued More than 900 Batelco team with its culture 92% members worked from home, of team members from March 2020. transformation journey served customers during 2020 to build on remotely its strong foundation Tests, carried out in collaboration and help team members with the Ministry of Health National 700+ Team to Combat COVID-19, to ensure thrive in a working COVID-19 tests the safety of team members on environment that conducted: campus. prioritizes their well- More than 60 internal being and continuous announcements, to increase 60+ awareness and promote safety development. This is a COVID-19 measures around COVID-19, were key driver for Batelco’s announcements circulated to all team members. ongoing success and Plus additionally an overall 74 growth. initiatives were conducted, to keep 7 spirits high among team members. internal virtual events held
Despite the challenges delivered by 1. Engage Our People: the pandemic, there was a strong focus on keeping team members fully • Batelco achieved 80% on its annual years engaged and involved in the business. Employee Engagement Survey, a 27 Average Age of new joiners Several key initiatives were re-adjusted 12% increase from 2019’s scores in 2020 to accommodate the new working (KFHG Report), a huge achievement setup, with 90% of staff working from for Batelco. home; as a result, we were able to achieve the following: 2. Develop Talent from within 8 years • 50 - Average training hours per team Average Years of Service member to the Company
• 56,427 Total training hours completed by team members 35 years Average Age of Employees in Years
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Our Culture & iCARE Values
Batelco’s iCARE values shape the culture of Batelco and For 2020 defines how members work together as a team, how they serve customers and also guides behaviour and decision making. The values are being practiced by all team members 12 iCARE and endorsed by Management. Ambassadors were selected based on To promote Batelco’s values, the iCARE Ambassador Awards set criteria were introduced to reward team members that truly project the iCARE values in their daily work and are considered as role model to others.
iCARE Ambassadors with Batelco Chairman
43 BATELCO ANNUAL REPORT 2020 HUMAN RESOURCES REPORT
HUMAN RESOURCES REPORT (CONTINUED) Chairman’s Award 3 winners Batelco Chairman, Shaikh Abdulla bin Khalifa Al Khalifa were selected for their endorsed a unique and prestigious programme, The exceptional performance and Chairman’s Award, to select 3 individuals from the iCARE remarkable achievements, Ambassadors to be honored for their demonstration of the while practicing the iCARE values and principles. Company’s values.
Chairman’s Award Winners with Batelco Chairman, CEO and Chief Human Resources Officer
Graduate Trainees Programme:
Batelco believes in investing in the Kingdom’s youth and takes an active role in developing future leaders. The Company has continued with its long-established graduate trainee programme in 2020 to develop the skills and knowledge of the younger generation.
Batelco’s development programme for graduates offers blended learning initiatives to equip them with in-demand employability skills and the technical training needed to enter the telecom industry. The training programmes are delivered through affiliations with international institutes such as INSEAD, Columbia University and Franklin Covey Institute amongst others.
Graduate Trainees established in full time roles at Batelco in 2020 90%
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Investing in Our Future Leaders
In October 2020, Batelco announced the launch of SIMBA, a new programme for Batelco team members that focuses on talent Several rigorous management. The aim of the programme is to assessments were provide Batelco with a team of young members applied for potential with the potential to qualify for the succession candidates, with plans and fulfil future senior roles.
The selected SIMBA team members will go 16 team through a comprehensive development members, from across programme that consists of working on all units, qualifying for strategic projects, mentorship opportunities, the programme. Technology Bootcamp, and executive education with an internationally recognized university.
Being Employee Centric: Batelco Certified as a Great Workplace
Batelco has been ranked the number 1 certified organization in the telecommunication sector across the Middle East in 2020 as a great workplace, by Great Place to Work® Institute Middle East. Achieving such a prestigious award reflects all the initiatives and commitment by management and team members in transforming the culture at Batelco during 2020 with many accomplishments in spite of the pandemic.
Great Place to Work® is the global authority on high-trust, high-performance workplace cultures. Every company is evaluated by a Trust Index; a questionnaire based on five principles to establish an employee’s definition of an ideal working environment. This certification is based on direct feedback from all Batelco team members, provided as part of a survey about the workplace experience. This is a great achievement and a very proud moment for Batelco.
45 BATELCO ANNUAL REPORT 2020 SUSTAINABILITY REPORT
SUSTAINABILITY EXCELLENCE
Our approach revolves around improving economic value, championing social development, and protecting the environment
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Sustainability at Batelco
Batelco 2020 Highlights
47% 24% of procurement Zero Data of growth rate in spending is towards female hiring Breaches local suppliers
Average Mobile Broadband BD3.5M Download Speed Up to To support “There is Good in Us” campaign 2000 Mbps
Our Approach to Sustainability At Batelco, sustainability is embedded within our business model and integrated across various operations. Our approach revolves around improving economic value, championing social development, and protecting the environment.
This Environment, Social and Governance (ESG) insert has been prepared in alignment with the Bahrain Bourse ESG Reporting Guide and references our contributions to the United Nations Sustainable Development Goals (UN SDG).
Our Stakeholders We value our stakeholders’ perspectives as they guide our strategies. Our stakeholders are:
Shareholders Local and Customers Communities Investors
Government Suppliers and Employees and Regulators Partners
We use various communication channels to ensure that we receive feedback from all stakeholders. Some examples of the communication channels we use are: • Annual meetings and evaluation sessions • Various awareness campaigns including social media campaigns • Complaints handling team • Extensive surveys • Batelco’s Annual Report • Chatbot, Mobile App, eService, bulk SMS • Intranet and newsletters
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Materiality Assessment To identify and prioritise the issues that are related to our business and concern our stakeholders, we at Batelco have conducted a materiality assessment, which involved the following steps: 1. Identify a list of potential material issues through desk-based research, including a review of peer companies, industry standards and employee interviews. 2. Prioritize stakeholders (both internal and external) and topics to rate material issues in terms of their perceived importance.
3. Review results internally within Batelco to ensure the list of material issues captures and is inclusive of all stakeholder perspectives.
In 2020, we identified 16 material topics that have been ranked in terms of significance to Batelco and significant to our stakeholders.
Sustainability Framework Batelco’s sustainability framework outlines seven focus areas that are critical to create a shared value for both Batelco and our stakeholders. Our framework is formed by incorporating the interests of our key stakeholders, and national and international strategic visions, including the Bahrain Vision 2030, as well as the UN SDGs. The Sustainable Development Goals (SDGs) were adopted by all United Nations Member States in 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030. The 17 SDGs are interlinked, and it is recognized that action in one area will affect outcomes in others and that development must balance social, economic and environmental sustainability.
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Privacy and Responsble personal data Customer protection Customer Relations relationships Responsible use of A products and services Transparent, Ethical and Corporate governance Our Accountable and business ethics People Company Anti-competition and Training and anti-corruption development of human capital Diversity and equal opportunity Health and safety
Innovation Community and Digital Development Reach Corporate social Network quality, responsibility reliability and availability Innovation and transformation Fostering an inclusive digital society
Environmental Sustainable Protection Economic Economic Energy consumption Growth performance and fighting climate Sustainable supply change Waste and water chain management
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A Transparent, Ethical and Corporate Governance and Business national level, Batelco adheres to Accountable Company Ethics Bahrain National Law for Child Labour The Board implements rigorous Law (2012) and Human Trafficking As one of Bahrain’s premier publicly controls for financial audit and Law (1999) which address children’s traded companies, Batelco is reporting, internal control, risk rights, protection against child labour, modern slavery, and human committed to transparency, openness management, and compliance with trafficking. and accountability. We implement the Bahraini law. There are effective a robust governance structure procedures for the appointment, with the highest standards of training, and evaluation of the Board Anti-competition and Anti-corruption corporate governance aligned with of Directors. New Board members Batelco complies to the zero- our core values. We aim to protect are provided with induction training tolerance policy for bribery and the rights of our shareholders and directly upon joining the Board. The corruption while promoting stakeholders. We are guided by a Board is responsible for reviewing the competitiveness. We adhere to all sound risk management framework Executive remuneration which is also rules and regulations related to anti- and work diligently to eliminate all governed by the Board remuneration competition and do not engage in sorts of bribery and corruption, while committee. any anti-competitive practice when promoting competitiveness and In March 2020, the Board of Directors launching products and promotions. advocating to advance human rights. was re-structured due to the end of Batelco is guided by a Code of the term and the departure of some Conduct and a Fraud Management directors and election of new board Policy. A whistleblowing policy is members. The Board of Batelco in place to ensure that incidents of currently comprises of 10 Board non-compliance are reported. The members and consists of 10% female policy is communicated to all Batelco Material Topics Covered : members and 90% male members. employees outlining how incidents - Corporate Governance and Business Ethics can be reported via hotlines and direct - Anti-competition and Anti-corruption The restructuring of the Board has reflected some structural changes employee communication channels in the directorship of the Board such as phone call, email and Committees: Executive Committee, whatsApp. In addition, employees are Remuneration, Nomination Donation provided with training courses on anti- and Corporate Governance Committee competition, anti-corruption fraud and the Audit committee, to ensure management and business ethics. Sustainable Development Goals that each committee includes Board On an organizational level, the members with relevant backgrounds Internal Audit division is responsible and experience. Each committee for performing audits of processes consists of four board members. The and procedures to bring a systematic, Remuneration, Nomination Donation disciplined approach to evaluate and Corporate governance committee and improve the effectiveness of includes a 25% female presence. risk management, control, and A part of the Board Committees governance processes including responsibility is to govern projects investigations related to fraud, and initiatives related to economic, bribery, and corruption as guided by environmental, and social aspects. the Fraud Risk Management Policy. The Board of Directors always Our risk management processes and emphasize on the importance of procedures are guided by ISO 31000 sustainable decision making for the standards for Enterprise Management future of Batelco, its employees System. In 2020, we have performed and to the society. They conduct an 31 audits to various divisions such as annual performance evaluation; the Finance, Global business, Legal & the evaluation assesses the board’s Regulatory departments. performance which mainly tackles A fraud investigation department - the economic and social responsibility under Internal Audit division- inspects towards our stakeholders and to fraud and corruption risks. The Risk ensure that they are operating within Management department performs a governed framework. risk assessments which are reported to the Executive Management and Human Rights Executive Committee twice a year We believe that human rights are and as and when required. Confirmed central to good corporate citizenship fraud cases are logged into the Fraud and to a healthy and trusting register and are discussed within the company culture. At an international Fraud Investigation Committee. level, Batelco abides to Bahrain’s commitment to the American Statue against human trafficking- Trafficking Victims Protection Act (TVPA). On
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Sustainable Economic Economic Performance Batelco develops valuable strategic Growth Our financial performance reflects relationships with our suppliers, Batelco’s commitment to execute on which we carefully select after We aim to continue our financial its strategic objectives. We were able applying screening aspects including growth and attract investment by to apply effective cost management health and safety screening. Batelco procurement teams intend to revamp diversifying our sources of income, approaches and continue to adapt to all procedures and policies by 2021 while maintaining low costs and high face the challenges of 2020. and integrate screening and auditing operating efficiency. Our supply chain We have successfully achieved ISO processes for environmental and is sustainable, and our procurement 22301 certification for Business social factors. processes are performed in a Continuity Management System responsible manner with a focus to to protect our income streams strengthen the local economy. specifically following an incident or disaster, while reducing the risk of further loss. For details on our financial performance, please refer to our Financial Statements in this Annual Report.
Sustainable Supply Chain Material Topics Covered : In line with our commitment towards - Economic Performance the fulfilment of the Bahrain Vision - Sustainable Supply Chain 2030, Batelco aims at strengthening the economy and promoting societal prosperity. To this end, we will commit to ensure that our supply chain is sustainable, and our procurement processes are performed in a Sustainable Development Goals responsible manner.
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Responsible Customer incidents are clearly defined and have During 2020, we focused on been further aligned with the business understanding our customer Relations continuity plans of the company. needs and their behaviour which Our customers are central to Regular internal and external audits was impacted by the pandemic. everything we do, and we value are conducted on data privacy We conducted a survey to better their loyalty and care about their to ensure Batelco remains fully understand their needs and satisfaction. We work to meet our compliant with the ISO standards. responded to the findings by customers’ needs for seamless enhancing our digital channels and Although there have been a number enabling smoother transactions. communications, while promoting of cyberattack attempts, Batelco the responsible use of technology. had no data breaches, nor actual Furthermore, we conduct periodic At Batelco, safeguarding customers’ cyberattacks actually occurred, over surveys to ensure customer personal data is of utmost the past three years. satisfaction. One of which is the Net importance. Promotor Score (NPS) which is carried Customer Relationships out by an independent and specialised Batelco is guided by a strong mission third party. and vision to serve and inspire its Batelco has a competent dedicated customers by building, operating, and complaint team that handles various investing in digital services, forefront levels of technical complaints Material Topics Covered : technology and connectivity to and disputes. Customers can raise -Privacy and Personal Data Protection empower people, enable businesses complaints through different -Customer Relationships and enrich society. channels including retail, e-services, -Responsible Use of Products and Services This supports our aim to be the email, call centre, and chat. leading provider of innovative and Complaints are assessed and analysed in-demand services, helping Batelco by the team to identify and resolve retain its position as the leading the root cause, compensate genuine telecommunications company in the customer cases, enhance the overall Kingdom of Bahrain. customer experience, and restore quality of service. We assess and Sustainable Development Goals Building and maintaining strong manage faults through our customer customer relationships is a priority. experience management tool that In 2020 we needed to review our helps with first time resolutions delivery systems to our customers to and supports the technical team to ensure their continued satisfaction identify, resolve and manage the which resulted in applying free home faults in a timely manner. Privacy and Personal Data Protection delivery within 24 hours during the mandated shutdown of all shops due To complement our efforts to resolve Data privacy is fundamental to to COVID-19. The Coronavirus had a issues quickly, we introduced real maintain the trust of our customers. major impact on our customers and time customer surveys through all Batelco has adopted industry best their families as the majority were our channels (Call, Chat and Social practices related to data security required to work and study from Media) to measure the overall through information protection tools, home. We, therefore, implemented customer experience. Our customer encryption of data while in transit and a number of initiatives which satisfaction team is set in place to at rest, and other robust processes. considered their communications contact customers with low ratings Batelco has a transparent Data Privacy needs. The initiatives included, free to better understand their concerns Policy and is ISO 27001 certified. browsing on educational websites, and immediately resolve pending issues. Customer feedback and Corporate-wide measures were unlimited usage for all fixed internet customers from April until the end of recommendations are also injected taken to protect the privacy and back into the business for gap analysis security of customer information. July, home delivery for services and devices, enhanced digital support and to improve the quality of our An external party was hired to products and services. hold engagement sessions across channels and boosted Fiber internet Batelco regarding the Personal Data speed with no additional charges from Protection Law in Bahrain, its impact July until August 2021. Additionally, on the organisation, and the actions 500 SME’s benefitted from financial required. Batelco performs annual support towards their internet bills for cybersecurity stress tests to evaluate 3 months. the effectiveness of our security controls. The tests are then repeated to verify that all identified gaps have been sufficiently addressed. Batelco has a standard emergency response plan to address security incidents. The severity of the incident and the expected time to mitigate
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Responsible Use of Products and measures are in place to ensure • Our advertisements adhere to the Services that customers are always being Telecommunications Regulatory informed not only of Batelco’s range Authority (TRA) consumer Batelco promotes the responsible of products and services, but also of protection law, which mandates use of technology. We provide the responsible use of these products that all communication is fair, our employees with products and and services. accurate and ethical. services awareness sessions, training programmes, and refresher courses. To ensure that our products and • Our child protection WiFi product Products and services updates services meet our customer and enables customers to configure are continuously communicated regulatory requirements: specific parental control rules. to all employees including retail staff through various internal • Our principles are guided by ISO communication channels. These 9001 for Quality Management.
Innovation and Digital Network Quality, Reliability and pandemic. The broadband speed is Reach Availability backed up with a solid and flexible Batelco Network is recognized infrastructure; advanced big data We are committed to providing fast, as leading the Bahrain management tools; and Home Wi-Fi secure, reliable connectivity to enable telecommunications sector in terms management platforms to maintain digital lives. At Batelco, we believe of speed and coverage for Fixed quality. that innovation and technology and Mobile broadband services Batelco ensures all wireless can be used as means to create new by multiple 3rd party benchmark communication services utilising opportunities that meet the different companies. As part of Batelco’s radio equipment operate within non- needs of the society. We remain dedication towards Bahrain and ionising radiation limits set out by the committed to forefront technology, the community it serves, it has International Commission on Non- building reliable networks and exceeded 99.999% up time target of Ionising Radiation Protection. This is delivering high quality services to our infrastructure availability by utilizing also detailed in Batelco’s frequency customers. the latest hardware, software, and licence, which states our obligations technology from leading Tier 1 regarding Electromagnetic Field technology providers. (EMF) exposure. In addition, aligned with the modern The significant increase in 5G coverage era cloud technologies, Batelco in 2020 was due to implementing has adopted cloud computing in its strategic expansions to position Material Topics Covered : various investments making services Batelco and Bahrain among the -Network Quality, Reliability and Availability and applications available 24/7 and few operators with nationwide 5G -Innovation and Transformation accessible from anywhere and any coverage and speeds. Our networks’ -Fostering an Inclusive Digital Society device. mobile speed growth rate was 150% Batelco has an advanced Network compared to 2019, reaching over Management Centre that 2,000 Megabits per second (Mbps) in continuously monitors all network 2020. elements, including disruptions. The In line with the above Batelco Network Operations Centre (NOC) has minimized its footprint in 2G Sustainable Development Goals and Service Operations Centre (SOC) technology by 39% compared to are responsible for the end-to-end other technologies, contributing to incident management along with spectrum efficiency and major power any interdepartmental coordination consumption reduction. required during emergencies, in alignment with the telecom industry Innovation and Transformation best practices. At Batelco, we believe that innovation Batelco’s self-healing networks make and technology can be used to create use of automation and artificial new opportunities that meet the intelligence to detect and remediate different needs of the society. We outages, failures, and breaches to seek to become a key digital enabler ensure best network performance and in the region by providing services exceptional customer experience. and products in four key clusters: Realising its customers’ evolving consumer, business, financial needs for reliable high-speed services, and e-government. Over the connectivity, Batelco increased, free years, Batelco has always worked to of charge, the fixed broadband speed position itself amongst the pioneering up to 5 times during the COVID-19 and leading operators worldwide.
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2020 Batelco’s innovation Fostering an Inclusive Digital Society 2020 Batelco’s digitalization advancements We remain committed to milestones • The first in Bahrain to launch 5G supporting and enabling the digital • Streamlined customer journey services with nationwide coverage. transformation and advocating digital experience on the mobile App accessibility for all in contributing which resulted in 250% increase in • The first in Bahrain to launch cellular towards making digital technology monthly active users. Apple Watch on virtual cloud available for all in line with the environment. economic vision 2030 for Bahrain. In • Digitized the customer refill process 2020, we announced 95% nationwide in the Batelco mobile App and • Delivered highly personalised, eServices platform resulting in a value-driven customer experience 5G coverage of areas across the kingdom making Batelco the first 400% increase in refills through through application of artificial Batelco owned channels. intelligence and big data. operator to have national 5G coverage in Bahrain, which positioned Batelco • Unified the Retail self-service user • Evolved our retail self-service among the leading operators in the interface, simplifying the customer experience providing customers GCC. We also proactively supported experience and providing new with fully digital process for specific customers in overcoming the digital payment features. prepaid services. challenges of the COVID-19 pandemic • Kick-off of the next generation cloud • Utilised remote site acceptance to by boosting the speed of all fiber fixed broadband customers up to 5 times based Digital Enterprise resource increase efficiency and security of planning (ERP) implementation. online storage files. which enabled customers to work from home and provided students • Launched a new Data Center which • Innovative new virtualisation and with access to online learning. has achieved Tier III certification for cloud solutions for Enterprise design and build from the Uptime customers that enabling seamless Institute account management.
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Our People Training and Development of Human Due to the pandemic, we have Capital shifted our initiatives towards digital Batelco offers a unique and an platforms and hosted many successful Our people are the true human online events, such as “B-Majlis”. It is exceptional employee experience. intellectual capital of the company. We believe in continuously growing an online forum to bring employees We believe in continuously developing from different units together to talk our human capital by developing and equipping them with the latest our people and equipping them with openly about important and relevant cutting-edge training to enable them topics. Awards such as the “Chairman’s the latest cutting-edge training to be the next digital age leaders. resources and tools to enable them Award” and the “iCARE Ambassador to be the next digital age leader. We Engagement surveys are completed Award” were introduced to keep our aim to attract, and retain talented by our employees, providing us with staff motivated. individuals, while increasing the an in-depth insight on how employees Batelco Bahrain total workforce at rate of national employees in feel about Batelco. The results of the the workforce. We provide our the end of year 2020 numbered 1,141 surveys help us better understand employees. The percentage of female employees with a safe and inclusive which units need more attention. work environment and combat all to male employees was at 33% to 67% Employee engagement stood at 80% respectively. forms of discrimination. in 2020 compared to 68% in 2019.
Workforce Overview 2018 2019 2020 Material Topics Covered : -Training and Development of Human Capital Total number of employees (#) 1,210 1,105 1,141 -Diversity and Equal Opportunity -Health and Safety By gender profile Female employees (#) 397 368 379 Male employees (#) 813 737 762
*Total number of employees includes BNET employees
Sustainable Development Goals
The Human Resource policy dictates and the availability of a pool of well- our approach to training and trained and knowledgeable staff development. New employees receive that can assume critical roles in the induction training upon joining company. the Batelco family. We provide our employees with internal and external Bahraini employees are offered a trainings which are often conducted dedicated leadership development in-house. E-learning courses are also programme to improve their offered via the internal employee skills and prepare future leaders portal. Batelco’s training centre is within the organisation. Each year, equipped with the latest technology our employees receive annual and made available to our staff. performance and career development Investing in the training of our staff reviews. ensures smooth succession planning
Training and Performance Reviews 2018 2019 2020
Total hours of training for employees (#) 28,086 47,402 56,427 Average hours of training per female 30 48 51 employee (#) Average hours of training per male 20 37 49 employee (#) Average hours of training per employee (#)1 23 41 50
1 Batelco considers total headcount at beginning of the year to compare planned vs. actual training hours
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Diversity and Equal Opportunity A whistleblowing policy is in place Batelco promotes an inclusive to encourage the reporting of work environment, where equal misconduct. All complaints are opportunity is realised, and open treated on a confidential basis and communication is encouraged. are promptly investigated. We also conduct Human Resource policy Reducing the risk of Batelco has zero tolerance for awareness sessions that cover harassment, bullying, offensive non-discrimination, diversity, and exposure to COVID-19 conduct, and victimisation of any inclusion. There were no known was our top priority. The kind. Discrimination and harassment incidents of discrimination of offices were sanitized based on race, colour, religion, harassment in the workplace during age, gender, nationality, gender 2020. We have targeted recruitment on a weekly basis, identity and expression, national schemes that focus on hiring female enhanced cleaning and origin, disability, marital status, employees across various areas within disinfecting protocols and citizenship status are strictly our business. We encourage female prohibited. participation in the workforce and were made. regularly aim to increase equality in recruitment.
Female Employment 2018 2019 2020 Female employees (#) 397 368 379 Female employment rate (%) 33 33 33
Health and Safety breast cancer, mental health, and To maintain a resilient culture, general health in collaboration with we continue to deliver on our well-reputed hospitals and doctors. commitment to providing our people In cooperation with the Ministry of with a healthy work environment. Health, a dedicated COVID-19 spread We have a Health, Safety, and awareness session was arranged Environment (HSE) policy that is during the peak of the pandemic. circulated and communicated to all Training on first aid is provided to management, operatives, suppliers, Batelco’s “Safety Marshals”, and and contractors. proactive audits for field operations Reducing the risk of exposure to and service delivery functions are COVID-19 was our top priority. The carried out. We are working closely offices were sanitized on a weekly with external consultants to assess basis, enhanced cleaning and our preparedness considering all disinfecting protocols were made. We safety aspects. also conducted regular COVID-19 tests Over the past three years, we have at the Batelco headquarters for the proudly maintained zero employee majority of staff working at the office. and contractor fatalities. Although In addition to constantly publishing we have conducted emergency COVID-19 prevention awareness response drills in previous years, in messages via our internal channels, 2020 we didn’t conduct any; as due to we held several health awareness COVID-19, the Bahraini Civil Defence campaigns covering topics such as suspended fire and safety drills.
Health and Safety 2018 2019 2020 Total hours of HSE training provided to employees (#) 77 164 396
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Environmental Protection Energy Consumption and Fighting Climate Change Data Centres, Exchanges, and Radio Stations We are committed to managing At Batelco, we strive to combat our environmental footprint. We climate change by lowering energy
strive to combat climate change, consumption across our operations; 751 695 lower energy consumption from specifically, our data centres. Also, we 652 our data centres and across constantly search for opportunities to our operations; reduce water deploy renewable energy, including 58 58 58 consumption and waste generation; planned investments in a Solar Energy 2 2 3 and recycling when possible. We seek Farm to power part of our facilities 2018 2019 2020 opportunities to deploy renewable and infrastructure. energy, such as solar or wind energy. Number of data centres owned by Batelco (#) We provide our employees with energy management and climate Number of exchanges owned by Batelco (#) change awareness sessions. Similarly, Number of radio stations (#) we conduct continuous audits of our energy management and monitoring system. Waste and Water Management Batelco is targeting to reduce annual We are committed to managing our Material Topics Covered : energy consumption and introduce environmental footprint and reducing -Energy Consumption and Fighting Climate clean energy sources as part of the water consumption, waste generation Change company’s main initiatives. In 2020, and recycling whenever possible. -Waste and Water Management we have made various efforts to Employees attend regular reduce energy consumption -as an environmental awareness sessions example but not limited to- Hamala that cover water consumption and Headquarter where we saved 28% waste management. Moreover, of energy consumption, driven by Batelco conducts audits of its water several initiatives such as: Introducing management and monitoring system. power-saving chillers, implementing Sustainable Development Goals The sewage treatment plant project Power Factor Correction (PFC) was launched in 2020, and the treated equipment and swapping to eco- water is now used for irrigation friendly air conditioners. Nonetheless, purposes. there were also other saving actions that all contributed towards the Our total water consumption has overall achievement. decreased by 3.6% compared to our consumption in 2019. In addition to Moreover, we have expanded the that, our recycled wastewater has infrastructure of the network across vastly increased with a rate of 382% Bahrain. The enhancement included compared to 2019. increasing the number of data centres and radio stations owned by Batelco by 8%. However, the total energy consumption only increased by 2% due to our energy saving efforts introduced to date.
Water Consumption 2018 2019 2020 Total water consumption (m3) 82,967 74,466 71,811 Recycled wastewater (m3) 4,148 3,723 17,952
57 BATELCO ANNUAL REPORT 2020 SUSTAINABILITY REPORT
SUSTAINABILITY REPORT (CONTINUED)
Community Development Corporate Social Responsibility Injaz Bahrain is also a strategic partner At Batelco, we understand our role and we have worked closely with them We acknowledge that we play a huge and responsibility towards our to deliver key programs that include role in the community, which we are community. We are aware that our the smart home Wi-Fi solution in dedicated to serve, with our socially products and services have an impact collaboration with Huawei where we responsible initiatives designed on many aspects of people’s lives by distributed Wi-Fi devices for students to have a positive impact for all enabling people to stay connected to enable distance learning during the inhabitants of Bahrain. We continue through multiple communication and COVID-19 pandemic. In addition, we to enhance this area with the aim social media platforms. have worked closely with Brinc Batelco of establishing and strengthening on conducting two student camps: partnerships with other entities in We take pride in supporting our the virtual innovation camp and the order to play a more beneficial role in community and believe in impactful Batelco STEM “Science, Technology, the community. and sustainable initiatives that will Engineering, Mathematics” leadership address important issues to help camp both aiming to benefit over 50 the community and have long term students within the entrepreneurial benefits that positively impacts and innovative skills. the economy, society and the environment. One of the biggest initiatives under heath pilar is the completion of the We have clear Corporate Social construction of a medical center for Responsibility (CSR) policy and Material Topics Covered : the Ministry of Health. The facility strategy that is implemented through was built by Batelco to the highest -Corporate Social Responsibility a defined framework and governance. standards and quality to contribute to The CSR program in Batelco evolves the health care in Bahrain. around four pillars: Education, Youth & Sport, Health, and Community that We also continued its support to are aligned with the United Nations the national initiatives, especially Sustainable Development Goals with those that focus on the youth and focus in Good health and well-being, sport while promoting Bahrain Sustainable Development Goals Quality education and Sustainable internationally with key programs cities and communities. such as the Shaikh Nasser Premier League, Equestrian events, Ministry of In 2020, a total of BD 1.291 million Youth Playgrounds and Bahrain world was allocated as donation budget tour cycling. to support the identified pillars. The company spend as average of 26% in Due to the unexpected pandemic in Education, 32% in Youth & Sport, 21% 2020, Batelco allocated an additional in Health and 21% in Community. BD3.5 million to support “There is Good in Us” campaign which was Key initiates under education included a nation-wide campaign to fight the support of the Crown Prince’s COVID-19 and support the community International Scholarship Program to mitigate the impact of the that aims at developing Bahraini pandemic. As a national company, talent for the future, by granting we are committed to supporting the them international scholarships in tremendous efforts of the National the best universities around the world Campaign and give back to the such as Yale, Harvard and MIT. Kingdom of Bahrain.
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