powerpoint project about Tesla company

profilenxr.ta
pro.pptx

May 2018

STC Profile

‹#›

Strictly Confidential

1

Part 1: The Company STC

Part 2: STC’s Financial Strength

AGENDA

‹#›

Strictly Confidential

2

STC at a glance

STC is the leading integrated telecommunications provider in KSA and the region as per market capitalization, with international presence in Middle East and Asia

Highlights

STC ownership

(%)

Majority shareholder is one of the world’s largest sovereign wealth funds

An integrated provider of fixed and mobile voice and data, wholesale and IT services

Home market leader for fixed, mobile and data in consumer and enterprise segments

STC has presence in 5 countries through controlling and minority stakes

Annual revenues of over SAR 50 billion (2017), directly serving over 25 million mobile subscribers across its operations

Biggest telecom group in MENA region by market cap with current market capitalization of 164 Bn SAR

Public Investment Fund

Public Pension

General Organization for Social Insurance

Public Float

Source: STC website Fact sheet

‹#›

Strictly Confidential

3

Sales

Slice 1 Slice 2 Slice 3 Slice 4 0.7 7.0000000000000007E-2 6.7699999999999996E-2 0.1623

Stc Contribution to ksa

STC as a group is one of the major contributors to the country’s economic and social development

4G 86%

3G 97%

Fast network provider

3.8%

GDP contributor

ICT contribution in KSA GDP

+10

Digital KSA enabler

KSA e-intensity rank improvement3

+170K

SME enabler

SME’s powered by STC2

Coverage1

SR 166bn

Market cap4

Value delivery

SR 8bn

Dividends paid 2017

Double the amount paid in 2013

1. % of the population with coverage 2. STC SME market survey 3. Improvement by 10 positions over the period of 2010-2015 (out of 73 countries, from 46 to 36); The e-Intensity Index measures how strongly a country has embraced the Internet through its broad based measure of its depth & reach relative to other countries 4. Market cap 7/5/2018

Source: Middle East Digitization Index, e-Intensity Index

‹#›

Strictly Confidential

4

Acquire 25% stake in Malaysia's largest mobile operator, Maxis

Stc History

STC is celebrating the 20th anniversary in 2018 since its corporatization

Telecom Bylaw

2002

Liberalization of ISP sector

1999

Award of Second Mobile License

Award of Two DSP Licenses

2004

Telecom Act

Establishment of Regulatory Authority

Corporatization of STC

1998

Liberalization of VSAT

Entry of Third Mobile Operator

2008

2007

2006

WTO Membership

2005

2001

STC Partial Privatization

2003

Entry of Second Fixed Operator

2009

2010

2011

2012

2013

2014

2015

2018

Unified Licenses

Finger Print Regulation

VOIP ban lifted

2016

Saudi 2030 vision

Entry of MVNO Operators

Launched STC academy

2017

STC wins Kuwait third mobile license

STC acquires Bravo, niche push-to-talk (PTT) mobile operator

Acquiring 100% of Awal Net Co

STC establishes ME’s largest venture capital fund $500m STV

KSA telecom market Timeline and Milestones

Acuire 35% stake in Oger Telecom

STC wins Bahrain third mobile license

Bahrain

100%

Kuwait

51.8%

STC to invest $50m VC fund

STC launches accelerator and incubator InspirU

‹#›

Strictly Confidential

5

Stc investments

STC has multiple operations and investments across several regions and along the value chain

35%

51.8%

100%

25%

100%

STC Solutions – 100%

Cloud and ICT

STC Specialized – 100%

PTT Mobile Operator

STC Channels – 100%

Telco, Airtime and SIM Card distribution

Intigral – 100%

VAS and Content/Media

Aqalat – 100%

Real Estate

ArabSat – 36.66%

Satellite and Broadcasting

Arab Submarine Cable – 50%

Submarine Cables

CCC – 49%

Call Centre

Multiple investments through STV

CONTROLLED

NON-CONTROLLED

Kuwait

Bahrain

Indirect stake*

Direct stake

STC’s international presence

Other investments

* STC is a shareholder of OTL (for TT) and BGSM (for Maxis)

‹#›

Strictly Confidential

6

STC Management

NASSER SULAIMAN AL NASSER

Acting STC Group CEO

STC KSA

Senior Management

(as per 1st of May 2018)

ENG. ULAIYAN M. ALYAMI

‹#›

Strictly Confidential

7

STC ksa Culture

STC has been reshaping its culture over the past years with six main values, core to enabling our vision of becoming a world-class digital leader

“We are a world-class digital leader providing innovative services and platforms to our customers and enabling the digital transformation of the MENA region”

Our vision

Listens to customers, seeks data to understand and serve their needs

Always links daily work priorities and decisions to how they will impact the customer most

Gets it right first time, on time, exceeding customer expectations

Has a can do attitude, values speed of action, never stops learning

Makes clear decisions and takes ownership for results without blame

Delegates to and empowers others

Delivers on promises and follows up

Encourages two way communication and speaks own mind

Evaluates, promotes and compensates transparently and merit based only

Acts with integrity-never uses one’s job for unjustified gain for self, family or friends

Responsive to STC’s priorities

Not siloed – Works with others up/down and across STC to deliver

Cares for, grows and gives structured feedback to others

Tracks competition, latest global trends and brings the best ideas to market

Abides by procedures yet continually takes action to simplify and improve them

Takes calculated risks and learns from mistakes

CUSTOMER FIRST

INNOVATION

LEAD WITH AGILITY

BUILD TRUST

ONE STC

We serve our customers passionately – External and internal

I capture the new

and deliver it

to our markets

I am an agile leader

who performs

in a changing world

I say what I think,

do what I say

and do it well

We collaborate

to deliver

STC’s vision

BEHAVIORS

‹#›

Strictly Confidential

8

Part 1: STC Strategic Positioning

The Company STC

STC’s Financial Strength

Opportunities & Challenges

Part 2: Introduction to ‘DARE’ Strategy

Part 3: Main Business Units

Part 4: STC Financials

AGENDA

‹#›

Strictly Confidential

9

STC Group 5 years Performance trend

STC was able to grow across all key metrices with very healthy EBITDA & NI margins and a balance sheet able to fuel growth …

Source: STC Financial statements

GROUP

x%

CAGR

+3%

+3%

+1%

Ability to fuel growth

STC currently has healthy balance sheet with more than SR14 billion cash

Similarly, STC’s Debt to EBITDA ratio is low, standing at 0.3

1

2

Group Revenues

(SR billion)

Group EBITDA

(SR billion)

Group Net income

(SR billion)

‹#›

Strictly Confidential

10

Series 1

2013 2014 2015 2016 2017 45.604999999999997 45.826000000000001 50.650612000000002 51.8 50.7

Series 1

2013 2014 2015 2016 2017 17.367000000000001 18.661000000000001 19.293651000000001 18.3 19.3

Series 1

2013 2014 2015 2016 2017 9.8970000000000002 10.959 9.2584280000000003 8.5 10.1

STC group financial health global ranking

Today, STC ranks 26th among the largest global telcos in terms of revenues

1

5

10

15

20

25

30

35

40

26

Regional peers

Source: Operators’ annual reports

GROUP

Global ranking by 2017 revenues

(USD Bn)

‹#›

Strictly Confidential

11

Series 1

[VALUE] AT & T Verizon China Mobile NTT Deutsche Tkom Comcast Softbank Telefonica Vodafone China Telecom America Movil Orange KDDI Corp China Unicom BT Sprint Time Warner Telstra Telecom Italia KT Corp SingTel SK Telecom Telenor Group Bharti Airtel Etisalat STC Swisscom MTN Hutchison Tel Telia Company Vimpelcom Ooredoo KPN MTS Axiata Telekom Austria Vodacom Millicom Turkcell Zain 160.54599999999999 126.03400000000001 118.07899999999999 106.512 92.677999999999997 84.5 83.236999999999995 64.393000000000001 58.957999999999998 58.246000000000002 56.006999999999998 50.902000000000001 44.463999999999999 43.715000000000003 34.103999999999999 33.347000000000001 31.271000000000001 26.788 24.548999999999999 21.879000000000001 16.710999999999999 16.401 16.059000000000001 14.624000000000001 14.068 13.696 12.176 11.12 10 9.5289999999999999 9.4740000000000002 8.9930000000000003 8.0340000000000007 6.9790000000000001 6.2919999999999998 5.415 5.2069999999999999 4.133 4.1139999999999999 3.4220000000000002

STC share price trend vs. main competitors, market

Investors understand the uniqueness of STC’s outstanding performance in a very challenging market environment – STC share price continuously outperforms peers and market

STC Share Price Evolution 2013- 2018, Indexed

Peers Mobily, Zain, TASI, Brent Oil

(SAR – daily closing price)

Index (Mar 2013) = 100

Market Cap. (SAR Million)

107,000

163,620

65,835

10,044

11,704

4,325

+53%

-82%

-57%

Apr-13

Apr-18

STC

Mobily

Zain KSA

A- Long term rating

#1 Telecom operator in EMEA

A1 Long term rating

Source: STC; Mobily, Zain annual reports, Tadawul

81.75

39.2

15.17

7,125

$110

82.9

15.14

7.18

7,870

$70.2

‹#›

Strictly Confidential

12

Brent Oil 41334 41365 41395 41426 41456 41487 41518 41548 41579 41609 41640 41671 41699 41730 41760 41791 41821 41852 41883 41913 41944 41974 42005 42036 42064 42095 42125 42156 42186 42217 42248 42278 42309 42339 42370 42401 42430 42461 42491 42522 42552 42583 42614 42644 42675 42705 42736 42767 42795 42826 42856 42887 42917 42948 42979 43009 43040 43070 43101 43132 43160 1 0.93046718778403936 0.91247045991637887 0.92855844391928744 0.9789129249227414 1.0362661334302854 0.98500272677694978 0.9892746773313944 0.99700054535538996 1.0070896200690784 0.96709689147427746 0.99136520632612246 0.97945828031267046 0.98227594982730415 0.99445555353572079 1.0212688602072351 0.96364297400472643 0.93792037811307039 0.86047991274313762 0.78040356298854752 0.63761134339211056 0.52108707507725871 0.48163970187238686 0.56880567169605523 0.50090892564988188 0.60698054899109255 0.59589165606253414 0.57798582075986193 0.47455008180330849 0.49218323941101616 0.43964733684784585 0.45046355208143979 0.40547173241228868 0.33884748227594985 0.31576077076895115 0.32694055626249774 0.35993455735320851 0.43746591528812945 0.45164515542628614 0.45155426286129796 0.38592983093982913 0.42755862570441738 0.44591892383203058 0.43901108889292856 0.45873477 549536451 0.51645155426286127 0.50627158698418473 0.50527176876931468 0.48018542083257587 0.47018723868387563 0.45728049445555358 0.43555717142337758 0.47854935466278858 0.47609525540810765 0.52299581894201053 0.55780767133248499 0.57780403562988547 0.60779858207598625 0.62761316124341027 0.59789129249227413 0.63870205417196868 TASI 41334 41365 41395 41426 41456 41487 41518 41548 41579 41609 41640 41671 41699 41730 41760 41791 41821 41852 41883 41913 41944 41974 42005 42036 42064 42095 42125 42156 42186 42217 42248 42278 42309 42339 42370 42401 42430 42461 42491 42522 42552 42583 42614 42644 42675 42705 42736 42767 42795 42826 42856 42887 42917 42948 42979 43009 43040 43070 43101 43132 43160 1 1.0075879944931958 1.039068277916789 1.0520423872361149 1.1107788254677065 1.089926225102551 1.1177675831107832 1.1289327549598429 1.1683406472038655 1.1978562196434612 1.2294347386162543 1.277981343665842 1.3295072925861631 1.3451562155737027 1.3785815628714533 1.3350239203562304 1.4334994449691469 1.559436015678394 1.5233232244275325 1.4082655391096772 1.210386865626399 1.1694661459246982 1.245983218561467 1.307026788834267 1.2319986864503707 1.380137894643777 1.3596768331104323 1.2752223280983142 1.2768193574553064 1.0556771025565101 1.0390710846467661 0.99986948705606316 1.0160264281694649 0.96997219933957657 0.8415376389506759 0.85500011928602404 0.87333227613170872 0.95510775738064735 0.90494868595919298 0.91217040219037215 0.88442447300136273 0.8531771481658722 0.78915984748229306 0.84373390515778746 0.98238075256850887 1.0118865014531846 0.99665016777228443 0.97848080126527393 0.98258424049185145 0.98424582463831789 0.96428576440589253 1.0420995462920992 0.99557098009607448 1.0186521240630786 1.0220721245402227 0.97314520757873235 0.98291262789917677 1.0141164484200216 1.0735910566356008 1.0411284177200091 1.1045703387582746 STC 41334 41365 41395 41426 41456 41487 41518 41548 41579 41609 41640 41671 41699 41730 41760 41791 41821 41852 41883 41913 41944 41974 42005 42036 42064 42095 42125 42156 42186 42217 42248 42278 42309 42339 42370 42401 42430 42461 42491 42522 42552 42583 42614 42644 42675 42705 42736 42767 42795 42826 42856 42887 42917 42948 42979 43009 43040 43070 43101 43132 43160 1 0.99489795918367341 1.0765306122448979 1.0178571428571428 1.0229591836734693 1.0153061224489794 1.1020408163265305 1.2448979591836733 1.3584183673469388 1.3647959183673468 1.5561224489795917 1.5880102040816326 1.6836734693877551 1.6772959183673468 1.6581632653061222 1.7028061224489794 1.8622448979591835 1.9323979591836733 1.8941326530612244 1.9005102040816326 1.6709183673469385 1.6772959183673468 1.6900510204081631 1.6581632653061222 1.6007653061224489 1.7729591836734693 1.7538265306122447 1.721938775510204 1.7538265306122447 1.5306122448979591 1.5624999999999998 1.6326530612244896 1.7091836734693877 1.7410714285714284 1.5561224489795917 1.6964285714285714 1.6390306122448979 1.6262755102040816 1.6007653061224489 1.6390306122448979 1.5816326530612244 1.4795918367346939 1.4221938775510203 1.4795918367346939 1.8494897959183672 1.8494897959183672 1.7091836734693877 1.6709183673469385 1.7028061224489794 1.7155612244897958 1.7538265306122447 1.9642857142857142 1.8928571428571428 1.9158163265306121 1.8061224489795917 1.7423469387755099 1.7551020408163263 1.7499999999999998 1.8826530612244896 1.9387755102040816 2.114795918367347 Mobily 41334 41365 41395 41426 41456 41487 41518 41548 41579 41609 41640 41671 41699 41730 41760 41791 41821 41852 41883 41913 41944 41974 42005 42036 42064 42095 42125 42156 42186 42217 42248 42278 42309 42339 42370 42401 42430 42461 42491 42522 42552 42583 42614 42644 42675 42705 42736 42767 42795 42826 42856 42887 42917 42948 42979 43009 43040 43070 43101 43132 43160 1 0.9785932721712538 0.97553516819571862 0.99082568807339455 1.0305810397553516 1.0214067278287462 1.0336391437308869 1.0305810397553516 1.0397553516819571 1.0458715596330275 1.0764525993883791 1.1253822629969419 1.1345565749235473 1.1712538226299694 1.1406727828746177 1.0030581039755351 1.0825688073394495 1.1131498470948011 1.1039755351681957 0.97553516819571862 0.6006116207951071 0.54067278287461773 0.45015290519877671 0.4318042813455657 0.46727828746177374 0.45382262996941897 0.42324159021406732 0.41345565749235469 0.30703363914373089 0.30703363914373089 0.3 4250764525993882 0.34250764525993882 0.38532110091743121 0.34495412844036694 0.28685015290519877 0.28256880733944956 0.35840978593272171 0.36330275229357795 0.33394495412844039 0.33394495412844039 0.29051987767584098 0.27461773700305808 0.22874617737003058 0.2220183486238532 0.30030581039755355 0.29357798165137616 0.26850152905198776 0.26116207951070336 0.27584097859327217 0.25443425076452603 0.25076452599388377 0.25076452599388377 0.22116207951070335 0.21259938837920489 0.21284403669724769 0.16807339449541284 0.16318042813455658 0.18103975535168196 0.18935779816513762 0.17712538226299696 0.18519877675840979 Zain 41334 41365 41395 41426 41456 41487 41518 41548 41579 41609 41640 41671 41699 41730 41760 41791 41821 41852 41883 41913 41944 41974 42005 42036 42064 42095 42125 42156 42186 42217 42248 42278 42309 42339 42370 42401 42430 42461 42491 42522 42552 42583 42614 42644 42675 42705 42736 42767 42795 42826 42856 42887 42917 42948 42979 43009 43040 43070 43101 43132 43160 1 1.0672379696769942 1.0797626895187871 1.2017139090309823 1.2379696769940673 1.110085695451549 1.1588661832564271 1.1160184574818721 1.1285431773236652 1.1344759393539883 1.097560975609756 1.1588661832564271 1.2623599208965062 1.2195121951219512 1.2808174027686223 1.2076466710613052 1.2320369149637442 1.3599208965062624 1.2992748846407383 1.1951219512195121 0.98220171390903099 0.78707976268951874 0.87211601845748188 0.81410678971654582 0.71193144363876071 0.7844429795649 3081 0.76466710613052069 0.75148319050758083 0.80751483190507578 0.61305207646671067 0.59986816084377059 0.59327620303230055 0.58998022412656559 0.55372445616348054 0.3922214897824654 0.42518127883981544 0.57350032959789055 0.59327620303230055 0.49769281476598548 0.52076466710613056 0.44825313117996046 0.43506921555702044 0.44495715227422544 0.48780487804878053 0.54383651944627553 0.54713249835201061 0.59327620303230055 0.59327620303230055 0.58338826631509555 0.67567567567567566 0.59327620303230055 0.6097560975609756 0.58206987475280159 0.57613711272247858 0.57811470006591958 0.42518127883981544 0.41199736321687541 0.48319050758075149 0.47528015820698749 0.46275543836519445 0.47330257086354643

W W W