Etihad Etisalat Co. announces the annual consolidated financial results for the period ending on 31-12-2019

Element List	Current Year	Previous Year	%Change
Sales/Revenue	13,450	11,865	13.358
Gross Profit (Loss)	7,800	6,582	18.505
Operational Profit (Loss)	967	603	60.364
Net Profit (Loss) after Zakat and Tax	31	-123	-
Total Comprehensive Income	-18	-170	-89.411
Total Share Holders Equity (after Deducting Minority Equity)	13,751	13,869	-0.85
Profit (Loss) per Share	0.04	-0.16
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
Increase (Decrease) in Net Profit for Current Year Compared to Last Year is Attributed to	Mobily succeeded in achieving a net profit for 2019, for the first time in five years, reaching SAR 31 million compared to net loss amounting to SAR 123 million in 2018, despite recording un-amortized transaction costs related to the refinancing agreements of Alinma and the syndicated loan, in total amounting to SAR 93 million and recording management fees under the technical services and support agreement signed with Emirates Telecommunications company amounted to SAR 113 million in 2019. The achievement of recording net profit for 2019 is mainly due to the following:

Element List

Explanation

Increase (Decrease) in Net Profit for Current Year Compared to Last Year is Attributed to

Mobily succeeded in achieving a net profit for 2019, for the first time in five years, reaching SAR 31 million compared to net loss amounting to SAR 123 million in 2018, despite recording un-amortized transaction costs related to the refinancing agreements of Alinma and the syndicated loan, in total amounting to SAR 93 million and recording management fees under the technical services and support agreement signed with Emirates Telecommunications company amounted to SAR 113 million in 2019. The achievement of recording net profit for 2019 is mainly due to the following:

Revenues

Mobily succeeded in growing its revenues in 2019 by 13.4% to reach SAR 13,450 million versus SAR 11,865 million in 2018. This is mainly attributed to:

1- Growth and improvement of subscribers base

2- Growth of data revenues

3- Growth of Business Unit revenues

Gross profit

Gross profit for 2019 amounted to SAR 7,800 million versus SAR 6,582 million in 2018, a growth of 18.5%. This is mainly attributed to the improvement in revenues, and the implementation of IFRS16.

EBITDA

Mobily succeeded in increasing its EBITDA to reach SAR 4,947 million in 2019 versus SAR 4,531 million in 2018, an increase of 9.2%, the highest EBITDA achieved in six years. The increase in EBITDA is mainly attributed to the growth of revenues, the improvement in operational performance and the implementation of IFRS16. Despite the increase in the general and administrative expenses compared to 2018, which included the reversal of certain provision related to the government fees, and recording in the management fees under the technical services and support agreement signed with Emirates Telecommunications company amounted to SAR 113 million in 2019.

Without IFRS 16 impact, 2019 EBITDA would have amounted to SAR 4,318 million, a decrease of 4.7% compared to 2018.

EBITDA margin was stable at 37% for 2019 versus 38% for 2018.

Operational profit (EBIT)

2019 operational profit amounted to SAR 967 million compared to an operational profit of SAR 603 million in 2018, an increase of 60.4%; reflecting the improvement in EBITDA.

Without IFRS 16 impact, EBIT would have amounted to SAR 857 million; representing an increase of 42.1% compared to 2018.

Financial charges and Zakat

Despite the company’s ability to reduce its net debt, the financial charges for 2019 increased to SAR 929 million compared to SAR 799 million in 2018; representing an increase of 16.3% that is mainly due to:

1- Recording un-amortized transaction costs related to the refinancing agreements of Alinma and the syndicated loan, in total amounting to SAR 93 million.

2- IFRS 16 implementation.

Without the impact of IFRS 16 and the refinancing agreements, the financial charges would have amounted to SAR 702 million; representing a decrease of 12% compared to 2018.

Zakat expenses for the current period amounted to SAR 49 million compared to zakat expense reversal of SAR 38 million in 2018. Basis of the External Auditor's Opinion Unmodified opinion Reclassification of Comparison Items Certain figures for the comparative period have been reclassified to conform to the current period presentation. Additional Information Net debt:

Mobily net debt amounted to SAR 10,569 million at the end of 2019 versus SAR 11,288 million at the end of 2018, representing a decrease of 6.4% compared to 2018.

CAPEX:

Capex in 2019 decreased to reach SAR 2,760 million versus SAR 2,819 million in 2018 due to the capitalization of spectrum fees in 2018 with an amount of SAR 450 million.

Operational Cash Flow:

Mobily substantially improved its 2019 operational cash flow (EBITDA-CAPEX), achieving the highest operational cash flow since 2011 to reach SAR 2,187 million versus SAR 1,712 million in 2018; representing an increase of 27.7%.

There are no accumulated losses at the end of 2019.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.