Investors Presentation Kuwait Telecomunications Company K.S.C.P - PowerPoint PPT Presentation

Investors Presentation Kuwait Telecomunications Company K.S.C.P Kuwait Telecommunications Company K.S.C.P. 3M- 2020

Table of content stc ’s History in Brief 3 Key Milestones 4 Vision, Mission & Values 5 Shareholder’s Structure 6 Population & Penetration 7 Competitive Strengths 8 Our 2020 Strategy 9 Market Share 10 Financial Results 11 Cash Dividends 15 Stock Performance 16 Appendix 17 Page | 2

stc’s History in Brief Kuwait Telecommunications Company (stc) is a Kuwaiti shareholding organization fused as per Amiri Decree No. 187 on 22 July, 2008, to work and deal with the third GSM versatile system in Kuwait according to Law No. 2 of 2007. Appropriately, stc propelled its tasks in December 2008 and the shares of the company were listed on Boursa Kuwait on 14 December 2014. It is a world-class computerized pioneer giving imaginative administrations and stages to clients and empowering the advanced change in Kuwait, and is an auxiliary of stc Group. stc has quickly arrived at a pioneer position in the market through its Moving the World client and representative driven system. Throughout a decade of excellence in service, transparency and proactivity, and as the fastest- ward for growing and most advanced telecom operator with the largest 5G network in Kuwait. Since 2008, stc ’s accomplishments have transformed the Kuwaiti telecom market, including changing wireless pricing models and fees. In 2016, stc entered the International Telecommunications Union (ITU). In 2018, stc became the first network to offer its customers 5G service and to enable enterprises in mobility. stc has invested in building the most advanced network, and proudly owns the largest number of sites covered by the 5G service in Kuwait. On 6 May 2019, stc has acquired 100% of the share capital of the leading Internet Service Provider in Kuwait - Quality Net General Trading and Contracting Company (Qualitynet). Page | 3 Page | 3

Key Milestones  Best Network Development Award at 5G MENA  Launches  Partnership with Real  stc launches Elite commercially  Best Telecom Company  stc Reap Three Accolades Madrid  Expands retail Program for loyal, VIP and by Arabian Business at ME Call Centre Awards  stc Group was network and high value customers  stc abolishes  Listing on KSE ranked the first launches joint incoming calls fees  Member of (ITU )  Leading for Investor amongst the top promotions with  stc turns into and other operators Relations in Kuwait 2018 - telecom  Retained earnings turned retailers. profitability during the follow  Leading Corporate for third in the MEA to be positive companies in the fourth year of operation. IR MENA region,  stc wins Comms  First Operator in  Wins "Advertising  Ranked 2nd in terms of according to MEA Best Telecom  stc starts deployment of the world to have all Business Innovation in Creativity Award" at Arab  revenue and subscriber Forbe’s "Global Finance Deal 4G LTE network IP network Risk Management Media Forum market share 2000" list 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2019 2018 2020  stc wins Sharjah  First to introduce  Completes nationwide  The first in Kuwait to  stc introduces high Gulf Top 10  VIP Customer Service Apple iPhone 4G LTE Coverage and introduce the all-new speed Mobile Business Award 2018 Award awarded Best LTE (VoLTE) technology Broadband in  Strategic deployment in the Kuwait  Acquisition of  Won the "2017 Speedtest partnership with Middle East  stc branches network Award “ by Ookla Qualitynet Manchester United reached a total of 70  stc launches company  Number portability and across Kuwait innovative prepaid  Launched 5G  First to introduce stc acquires majority offerings and services in June  Excellence in newest HSPA+ (42.2 of ported numbers  First to introduce the acquires 500K 2019 Governance Award Mbps) Broadband between operators LTE Advanced customers in one network year  stc and Huawei sign  Won the “Best Operator MOU to develop 5G Network” from telecom services world Middle East  Launches the new  5G Innovator of the Year brand stc Awards Page | 4

Vision, Mission & Values Values Vision A world-class digital leader providing innovative services and platforms to our customers and enable the digital transformation in Kuwait. stc is keen to present its customers with numerous telecommunications opportunities with the goal of boosting existing relationships and providing customers with the best experience around the clock which will, in turn, earn us their trust. Mission Our Strategy outlines the key pillars to expand stc ’s topline, create value with greater efficiencies, while preparing the company for the future:  End to end digital experience  Enhance core performance  Reinvent customer experience at world class standards  Leveraging on group synergies Page | 5

Shareholders' Structure 24% 24% 52% Kuwaiti Governmental Saudi Telecom Public Shareholders Entities stc KSA, the leading regional The Kuwaiti government holds Public Share holders consists    telecom operator, won the bid for 24% of stc ’ capital through of companies, portfolios, third mobile license in November different governmental funds and individuals. 2007, and paid USD 980 million for entities. the license. The public shareholders are  Currently 2 out of 7 board mix between local, regional  stc has a management agreement members are representing the and international investors.  with stc Group. Kuwaiti government bodies. Independent Board member  stc increased its ownership elected during the AGM on  percentage from 26% to 51.8% 16th of May 2016. through a VTO at the beginning of 2016. Currently, 4 out of 7 board  members are representative of stc group. Page | 6

Population & Penetration Current Population Current Penetration 4.8 Million 171% Kuwait Population (Million) & Penetration Rate (%) 6.0 250% 205% 200% 194% 5.0 182% 200% 176% 172% 171% 155% 152% 4.0 133% 150% 3.0 100% 4.8 4.6 4.5 4.4 4.2 2.0 4.1 3.9 3.8 3.7 3.6 3.4 3.5 50% 1.0 93% 57% 0.0 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Population as per PACI Kuwait, Penetration Rate as per ITU till 2018, while 2019 till June 2019 are calculated by stc IR Page | 7

Competitive Strengths Relation-ship stc (the largest telecom company in the region) will continue to be a major shareholder and will continue to benefit from being a member of stc group. Through this relationship, stc has access to technical support, with industry best practice for provision of telecom services, as well as stronger purchasing power benefiting from stc group joint procurement and coordination of regional initiatives. Extensive stc has an extensive, well-developed and increasingly sophisticated direct and indirect distribution network distribution covering all parts of Kuwait. stc Inaugurates New Branches to its network amounting to a total of 93 branches channels across Kuwait stc benefits from having a modern and efficient network that is adaptable to emerging technologies. stc has Modern & the widest 5G service coverage in Kuwait reaching 100% of populated areas as it was also the first company in Scalable Network the Middle East to launch the testing process of 5G service. Since its launch in 2008, stc has built a valuable brand associated with excellence. By the end of 2019, stc has rebranded with the intention to unify its brand with stc Group’s companies to reflect its plan in creating new Strong Branding opportunities in addition to enabling the digital transformation through implementing stc Group’s 2020 new digital transformation strategy. Changing the brand name to “ stc ” positions the company among the most valuable brands in the Middle East. Strong Growth & stc has a proven track record of successfully providing high-quality product and services to its customers. Results stc ’s revenue market share stood at 33%. stc follows a customer-centric strategy, which entails focusing on the communication needs of customers and Customer- providing differentiated service. This strategy positions stc as the only telecom provider in Kuwait that targets Centric Strategy enhancing customer experience. Page | 8

Our 2020 Strategy …..aims to position stc at the center of Kuwait’s digital ambitions and is built upon 5 strategic pillars I II III IV V Uplift and Capture Revamp Transform Enhance Innovate Enterprise Enabling Technology Employee on Consumer Opportunities Capabilities Capabilities Potential Value growth strategy in the core Technology as the enabler of digital transformation   Innovative service offering venturing in new Corporate functions to enable the development of a   services beyond the core sustainable business model End to end digital experience Leveraging stc Group capabilities   Page | 9 Page | 9