powerpoint project about Tesla company
May 2018
STC Profile
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Part 1: The Company STC
Part 2: STC’s Financial Strength
AGENDA
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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
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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
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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
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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)
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STC Management
NASSER SULAIMAN AL NASSER
Acting STC Group CEO
STC KSA
Senior Management
(as per 1st of May 2018)
ENG. ULAIYAN M. ALYAMI
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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
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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
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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)
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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)
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[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
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