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Digital Next

Etisalat’s journey to

become a Digital Telco

Salvador AngladaGroup Chief Business Officer, Etisalat

8th December, 2019

Digital companies are disrupting traditional industries

Banking Retail Telecommunications

New business models based on agile platforms are unlocking new value

International companies Local companies

Technology is the key driver for this disruption and innovation

TECHNOLOGY DRIVERS

USD 2.2 trillion

GDP

Contribution by

2035

5G

Artificial

intelligence to be

“common in the

office” by 2025

AI/Robotics

25 billion devices

in 2025

IoT

10% of global

GDP stored on

Blockchain by

2027

Blockchain

80% of corporate

workloads will be

in the cloud by

2025

Cloud

More data

created in the

last 2 years than

in human history

Big Data

Over USD6

billion raised by

AR/VR startups

in 2018

AR/VR

Quantum C.

Commercial use

of quantum

computing by

2030

New ways of working are fostering collaboration and agility

Design thinking

Experimentation

Devops

Prototyping

Agile

Brick & mortar companies have been able to succeed and transform themselves

Communication

& Media

How likely is it for Selected Industries to be Disrupted by Digital Trends?

67%

Financial

Services

Technology Professional

Services

Education RetailHealthcare Government Manufacturing

62%

54%51%

43%41%

36% 36%

27%

Source: Harvard Business Review

The telecommunications industry facing the strongest pressure to Digitize

OTT Players

And OTT players are the main disruptors

2010 2014 2018

Average Market cap. (3)

This disruption has already been reflected in companies’ valuations

Average revenue drop (1)

2010 2014 2018

-2% CAGR

Capex intensity (% revenue) (4)

Average EBITDA (2)

-3% CAGR

Source: (1,2) Top 5 European Telco operators (Telefonica, Orange, Vodafone, Deutsche Telecom and Telecom Italia), Annual reports (3) European Telco operators, Oliver Wyman (4) Developed countries,

Bank of America Merrill Lynch, Etisalat International Technology

2015 2016 2017 2018

-24%

15.70%15.50%

15.80%15.50% 15.50%

2014 2015 2016 2017 2018

In this context, Etisalat has performed amongst its peers and protected value

TSR (% last 12 months)

Market evolution * (2019 YTD)

-6.2%

-0.3%

9m 2018 9m 2019

23.5 23.4

10 9.4

-2%

Digital Revenue

contribution

- 2018 (%) **

10% – 15%

-3

-5

-14

-16

-27

-33

-35

-40

-44

Vodafone

Oredoo

Etisalat

Orange

Telenor

Singtel

Vodacom

Veon

MTN

Airtel

1

Customer satisfaction

(%)***

Brand Value (Bn $)

Revenue evolution * (Bn AED)

2016 2018

31.4 32.2

+1% CAGR

Source: Etisalat

* UAE figures - Figures as 14/11/2019

** % over total etisalat revenue

*** UAE Business Trim Figures l Audited ranking for telco companies

2016 2017 2018

3.85.5

7.7

+42% CAGR

Etisalat Market Cap *

USD 40 Bn2016 2018

Top 10%

worldwideTop

30%

And it has been recognized as one of the Digital Telco Leaders in the world

Source: Analysys Mason

PLANNING BEGINNING TRANSFORMING DIGITALIZED

Etisalat has embraced “Digital First” strategy to become a Digital Telco

Transform the company

“Be Digital”

Evolve the core

“Go Digital”

Create new engines

of growth

Invest in the

future

Our E2E digital transformation is creating sustainable value for the company

Efficiency

Agility

New revenue streams

Customer centric focus

We have moved to an open network/ IT Cloud stack & redeployed our channels to

become Omnichannel

Tra

dit

ion

al

Sta

ck

Mo

du

lar

Arc

hit

ec

ture

E2E Slicing

End to End Orchestrator

Network APIs

Big

Data

, A

I, M

ach

ine

learn

ing

Dig

ital O

pera

tio

ns

Securi

ty a

cro

ss a

ll la

yers

Edge Computing

Virtualized Network Telco Cloud

Public Cloud

Etisalat.aeB2B

E-Commerce

Mobile

APPShops

Market

place

Network / It transformation

New capabilities across multiple channels

We are streamlining and digitizing our processes through the use of RPA and

introducing AI in our call centers

Robot Process Automation

Artificial

Intelligenc

e

Machin

e

Learnin

g

Virtual Agent

We are massively using AI technology to explode our data and personalize our

offering

Data Warehouse &

Advanced analytics

Adaptive engine

Real-time prediction

Predictive engine

Statistical models

Intelligent Use

CasesAI & Machine

learning

Channels

We are changing our operating model, developing new capabilities and transforming

our approach to open innovation

Agile teams – Dual mode

Design Studio Pod

We have transform our offering and convert declining markets in new opportunities

Traditional SMB Offering Business Edge

YoY Revenue drop

Fixed

connectivity

Fixed line

telephony

Cloud Connectivity

V E R T I C A L S O L U T I O N S

T H E N E W P L A T F O R M

UcaaS Platform

Cloud

Wifi

Digital

Security

Physical

Security

Online Marketing

SaaS Platform – 100+ Applications

Clinics IT CompaniesRetail

We have created new engines of growth that already represent 20% of our Enterprise

and Government revenues

Blockchain UTC

We are also investing and entering in new markets that will fuel our future growth

E-Wallet

At the moment you have ended, you need to start again

Our journey is only at the beginning

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Thank you