#1العربية A al arabia EARNINGS PRESENTATION 40. Lu YEARS 40 Aal arabia سنة إحسان منصة إحسان تبرع الان | Ehsan,st www.al-arabla.com 02 2023#2العربية - DISCLAIMER This document has been prepared by al arabia for information purposes only and is not and does not form part of nor should be considered advice, recommendation, offer for sale or solicitation of any offer to subscribe for, purchase or sell any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. 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The distribution of this document in some jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restriction. al arabia 1 Earnings Presentation Q2 2023#3العربية - al arabia Chairman & CEO ABDELELAH AL-KHEREIJI CHAIRMAN MOHAMED AL-KHEREIJI CHIEF EXECUTIVE OFFICER "al arabia Outdoor Advertising has always strived to be a leader in the outdoor advertising sector." "We are keen to maintain the development of international technology in field of Advertisement." al arabia 2 Earnings Presentation Q2 2023#4العربية - al arabia al arabia Historical Structure ESTABLISHEMENT Started as a Saudi limited liability company in Riyadh on 3 March 1983, with a share capital of one million Saudi Riyals SAR 1,000,000 1983 Arabian Contracting Services Co. TRANSFORMATION al arabia Initiated the digital transformation strategy and started to install and operate digital billboards with special designs 2018 Digitalization Strategy 3 2006 Closed Joint-Stock Co. GROWTH Converted into a (closed) joint stock company on 30 May 2006. Capital increased to sixty million Saudi Riyals (SAR 60,000,000) 2021 Listed in the Saudi Exchange PUBLIC LISTED COMPANY Public listing in the Saudi Exchange (Tadawul) on 15 November 2021, with a share capital of five hundred million Saudi Riyals (SAR 500,000,000) divided into fifty million (50,000,000) ordinary shares. IPO Price SAR 100 Earnings Presentation Q2 2023#5A A العربية al arabia alarabia Al Arabia Strategy 317 RS سارك Content CELTIBUF LVPK Key Highlights المبال Cabanes Financial Performance سرعت ما#65 A العربية al arabia ARS A alarabia 440 VESURS AL ARABIA STRATEGY Arabian Contracting Services Company#7العربية - al arabia 2 al arabia Strategy 1 3 Continue to adopt latest technology and data-driven solutions Maintain Market Leadership Expand to new markets through strategic partnerships 6 العربية al arabia 77 Miln Earnings Presentation Q2 2023#801 Kingdom of Saudi Arabia Strategy Overview Continue the digital transformation Increase revenue from indoor and private sector Increase billboards utilization rates Increase revenue from direct sales to clients Excellent operational efficiency 2018 MEZAH Our digitalization strategy started with rolling out your first digital billboard, Mezeh. 02 Continue Adopting Latest Technology And Data-Driven Solutions رؤية VISION 2025-230- المملكة العربية السعودية KINGDOM OF SAUDI ARABIA 80% We aim to digitalize: 80% of our screens achieving the 2030 vision. BRIDGE Increase in Digital Faces 2019 al arabia Digital Gateway was launched to celebrate 70% the completion of digitalizing. 60% King Fahad Road 50% 40% 52% 66% 70% ACROSS KSA 30% 2021 We have successfully 20% deployed over 750-800 digital screens across 10% KSA. 13% 29% 0% 2018 2019 2020 2021 2022 Q2 2023 Red Sea Qiddiya Ad Diriyah Riyadh City 03 Expand To New Markets Through Strategic Partnerships King Salman Park Private Malls AlUla Airports العربية A al arabía 7 Neom Amaala Riyadh Metro Earnings Presentation Q2 2023#9A العربية al arabia We live Entertainment PRIVADH FRONT 8 واجهة الرياض RIYADH FRONT ALULAR CELEBRATE EVERY MOMEN العلا ALULA experiencesluts.com KEY HIGHLIGHTS Arabian Contracting Services Company المدخل Entrance 4+#10العربية Aalarabia Q2,2023 Key Highlights Riyadh Airport Winning the bid Eastern Province Winning the bid SCɅI SCAI Signing a consortium Billboards Based on contracts Commercial Campaigns 9 برنامج جودة ـــاة الحيــ Quality of Life Program Signing a memorandum of cooperation Faces 5,398 Based on contracts 25,004 +545 Digitalization 70% Rate ooo AD Sponsored CSR Campaigns 14 Earnings Presentation Q2 2023#11Q1 2023 The number of contracts during Q2 2023 Key Highlights Q2,2023 العربية - 10 al arabia Kingdom of Saudi Arabia A Region Qassim Region Number of Contracts 1 Total 1 Outdoor Advertising Number * Contracts Value of Billboards 12 12 * figures are in (Thousands) SAR 20,520 20,520 Distribution of billboards to the place of advertisement Distribution of billboards according to the method of operation Place of Advertisement Number of Billboards Method of Operation Number of Billboards Outdoor 12 Indoor 0 Digital 12 Static 0 Earnings Presentation Q2 2023#12Q1 2023 The number of contracts during Q2 2023 (as of 31 Dec 2022) Key Highlights Q2,2023 العربية - 11 al arabia Egypt Number Region of Contracts Number of Billboards * Contracts Value Cairo 9 34 Giza 1 1 The North Coast 1 (City of El Alamein) Total 11 59,157 1,013 12 4,092 47 64,262 * figures are in (Thousands) SAR Distribution of billboards to the place of advertisement Distribution of billboards according to the method of operation Place of Advertisement Number of Billboards Method of Operation Number of Billboards Outdoor 47 Indoor 0 Digital 38 Static 9 Earnings Presentation Q2 2023#13العربية A al arabia 12 Billboards and Faces (Updated) Billboards and Faces Updated Until 30 June 2023 Number of Billboards Number of Faces TYPE Saudi Arabia Egypt Saudi Arabia Egypt Digital 1,791 38 17,545 380 Static 3,607 9 7,459 18 Total 5,398 47 25,004 398 70% DIGITALIZATION A *H A Earnings Presentation Q2 2023#1413 A العربية al arabia الكاريت الوطني اعد التين و لا دولة موبايلي FINANCIAL PERFORMANCE Arabian Contracting Services Company ابتداء من 145 ريال شهريا مع باقاتنا المفوترة تحصل عليه الان احس مهر 10675 ينال شامل الصمية#15العربية - al arabia 14 Income Statement Highlights Key Figures Revenue Q2 2023 Q2 2022 Change (%) 294,316 263,635 12% Gross Profit 142,228 106,259 34% Operating Profit 111,875 79,688 40%+ Net Profit 85,040 62,795 35% + *Adjusted Net Profit 85,478 64,926 32% Profit after adding the loss from discontinued operations 1,200,000 1,000,000 ( 800,000) ( 600,000) (400,000) 200,000 (0) Revenue Gross Profit Operating Profit Net Profit Q2 2023 Q2 2022 All figures are in (Thousands) SAR Earnings Presentation Q2 2023#16العربية alarabia 15 200,000 150,000 100,000 50,000 500,000 400,000 300,000 200,000 100,000 263,635 Revenue 12% Income Statement Highlights 294,316 0 Q2 2022 Q2 2023 76,131 EBIT 47% 111,945 0 Q2 2022 Q2 2023 All figures are in (Thousands) SAR 300,000 250,000 200,000 150,000 100,000 0 150,000 100,000 50,000 84,075 Q2 2022 62,795 Net Profit 35% 85,040 Q2 2022 Q2 2023 EBITDA* 44% 121,278 Q2 2023 *Not included right-of-use assets Depreciation Earnings Presentation Q2 2023#17العربية A al arabía 16 200,000 150,000 100,000 50,000 Income Statement Highlights - SEMIANNUAL 2023 500,000 400,000 300,000 200,000 100,000 551,036 Revenue 10% 606,682 0 First Half of 2022 First Half of 2023 156,461 EBIT 45% 227,166 0 First Half of 2022 First Half of 2023 All figures are in (Thousands) SAR 300,000 250,000 200,000 150,000 100,000 0 150,000 100,000 50,000 127,684 Net Profit 38% 175,862 First Half of 2022 First Half of 2023 EBITDA* 245,453 171,856 H 43% + First Half of 2022 First Half of 2023 *Not included right-of-use assets Depreciation Earnings Presentation Q2 2023#18العربية - Q2 2022 62,795 22,245 + Q2 2023 85,040 Net Profit 127,684 48,178 175,862 First Half of 2022 First Half of 2023 al arabia achieved a net profit of SAR 85.0 Million during the second quarter of the year 2023, with an increase rate of 35% year on year (YOY). This increase is attributed to the growth in revenues from continuing operations by 12%. The reason behind the increase in revenues is due to the growth in revenues of the outdoor advertising segment by 12%. This resulted from al arabia's continuity and its leadership in digital transformation operations. As this mainly contributed to the increase in the capacity of a larger segment of clients and advertisers. Furthermore, the entry of each of the Jeddah Season, Hajj, and Eid al-Adha had an impact on the increase in demand for advertising campaigns. al arabia achieved a net profit of SAR 175.9 Million during the first half of the year 2023, with an increased rate of 38% year on year (YOY), and this is due to the growth in revenues of the outdoor and indoor advertising segments by 9% and 12%, respectively, al arabia's continuity and its leadership in digital transformation operations also contributed to the increase in the capacity of a larger segment of clients and advertisers. Despite the increase in the company's operating expenses by 19% year on year (YOY), al arabia maintained an increase in the profit margin levels compared to the same period of the previous year, in alignment with what was mentioned in the guide upon IPO. al arabia 17 All figures are in (Thousands) SAR Earnings Presentation Q2 2023#19العربية - 18 al arabia 48,142 Working Capital & Loans From Banks Working Capital* as of 30 June 260,338 2022 2023 308,480 441,111 Loans From Banks* as of 30 June 269,330 171,781 2022 2023 The working capital increased as of June 30, 2023, to SAR 308.5 Million compared to the same period of the previous year, this is due to the increase in trade receivables by 37% and the increase in cash and cash equivalents by 7%. Also, the decrease in short-term loans by 61% had an impact on this increase in working capital at the end of the period. *Comparative figures for the period ended 30 June 2022, have been reclassified to conform to the current period's presentation and classification All figures are in (Thousands) SAR Earnings Presentation Q2 2023#20العربية - 19 al arabia 4% 3% Outdoor Advertising Indoor Advertising Printing Revenue By Segment 93% 263,635 294,316 Q2 2022 Q2 2023 The outdoor advertising revenues for Q2 2023 amounted to SAR 274.8 Million compared to SAR 244.8 Million for the similar quarter of the previous year, with an increase of 12%. The Indoor advertising revenues for Q2 2023 amounted to SAR 12.2 Million compared to SAR 14.9 Million for the similar quarter of the previous year, with a decrease of 18%. The printing revenues for Q2 2023 amounted to SAR 7.3 Million compared to SAR 3.9 Million for the for the similar quarter of the previous year, with an increase of 88%. All figures are in (Thousands) SAR Earnings Presentation Q2 2023#21Other Financial Highlights Financial Indicators as of 30 June 2023 CAGR-2 Years 41.6% العربية - ROAA 6% $ ROAE 20% ROR 29% Market Share More than 62.3% Foreign investor's ownership percentage In less than 2 years of listing, the company's performance were attractive to local and foreign investors. Alarabia, has one of the highest percentages in QFI among the 9 other companies that were listed in 2021. ALARABIA RANKED EPS D/E 11th PLACE by Revenue 3.52 SAR 18% 20 al arabia * Largest Outdoor Advertising companies Worldwidw in 2017 by revenue in million USD 'Statista.com' Earnings Presentation Q2 2023#22العربية Aalarabia al arabia THANK YOU Investor Relations Copyright © 2023 Al-Arabia Inc. All rights reserved. www.al-arabia.com Rate Card Alarabia