Integrated Report 2021
Table of Contents
Chairman's Statement | 4 | |
Corporate Governance Report | ||
- | Statement of procedures taken to | |
complete the corporate governance | ||
system, during the year 2021, and | 9 | |
method of implementing thereof | ||
- | Statement of ownership and | |
transactions of Board members', | ||
their spouses and children in | 11 | |
EITC's shares during 2021 | ||
- | Board of Directors | 12 |
- | External Auditor | 28 |
- | Audit Committee | 29 |
- | Nomination and Remuneration | 31 |
Committee | ||
- | Investment Committee | 33 |
- | Insiders Committee | 35 |
- | Internal Control System | 36 |
- | Details of Violations committed | 40 |
during 2021 | ||
- | Statement of contributions | |
made by the Company during | ||
the year 2021 in the development of | ||
the community and the preservation | 41 | |
of the environment | ||
- | General information | 42 |
Sustainability Report | ||
- Our Strategy and Pillars | 49 | |
- | Delivering the benefits of | 52 |
ICT to everyone | ||
- | Making our people and | 54 |
communities happier | ||
- | Operating ethically and | 70 |
responsibly |
Chairman's Statement
Dear Shareholder,
On behalf of the Board of Directors (the "Board") of Emirates Integrated Telecommunications Company (the "Company"), it is my privilege to present the Company's annual report, which covers the achievements and financial results of 2021. I would like to take
this opportunity to pay tribute to my predecessor H.E. Mohamed Al Hussaini, now Minister of State for Financial Affairs. During his 3-year tenure, H.E. Mohamed Al Hussaini successfully steered the Company through a transformational period. His leadership, his extensive business and financial experience have been highly valuable to the Company.
2021: A Year of Recovery
As much as 2020 was a challenging and tumultuous year, 2021 was one of recovery, reforms and transformation.
The United Arab Emirates ("UAE") responded to the pandemic with speed and resolve. The government initiated and executed a rapid and massive vaccination programme. As a result, mobility restrictions were gradually eased. This allowed the economy to rebound sharply and more importantly, return to growth.
In 2021, the UAE also introduced sweeping reforms to drive greater social, legal
and economic liberalisation. These measures were designed to position the country as a vital hub for investment, innovation, mobility and sustainability. They included in particular relaxing foreign ownership restriction on UAE companies, providing long-term residency options and implementing several corporate law reforms.
During 2021, the UAE capitalised on people's desire to travel by easing travel restrictions. This culminated with Expo
2020 which opened its doors to visitors on
1 October and contributed to the dynamism of the economy in Q4.
All of these measures and events sealed the country's position as a prime international hub.
Telecom Industry: Back to Growth
The pandemic highlighted the importance of communication infrastructure. As people switched to remote working
and learning, a fast reliable broadband connection became one of the most essential needs. This helped improve the adoption of fixed broadband services and accelerated their growth.
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Chairman's Statement
The UAE reaffirmed its position as a global hub as mobility restrictions subsided and tourism activity increased. Telecom revenues recovered and more so in the fourth quarter with the start of Expo 2020.
Company Progress: Growth, Investment and Transformation
Two years ago, we reset EITC on a path to transformation. In 2020, we started a multi- year large-scale programme to modernise our IT by retiring legacy platform and driving digitalisation. In 2021 we accelerated this program. In 2019, we initiated a very ambitious 5G deployment plan to be at the forefront of technological evolution. In 2021 we reached a 5G coverage of 91%.
In 2021, we have been very active in the market. We launched new products and services to provide our clients with greater choices. We improved our offer providing higher speeds and greater data allowances and we continued serving our clients with the highest level of engagement and dedication. We have also accelerated our digitalization efforts in several areas. This focus propelled our mobile app to the top rank on the App Store in terms of ratings. 87% of our postpaid customers interacting with us digitally. 85% of service transactions
are now handled digitally. Furthermore, we have successfully leveraged the increasing appetite for digital sales channels and multiplied digital sales of mobile services by
4. We will accelerate this journey to deliver more market leading innovations and further simplify our customers' lives.
We repositioned the Company for growth through a disciplined execution of our strategy, a transformation programme as well as a dynamic and innovative commercial approach.
Company Financials and Capital Structure
2021 marked an important milestone in the evolution of our capital. On 20 January the Board decided to release foreign ownership constraints on institutional and retail investors. This decision was implemented on 23 February with foreign ownership limit set at 49% of the capital of the Company. This enhanced the liquidity of our shares and led to a higher investor appetite which was reflected in the evolution of our share price.
In 2021 we achieved a total revenues of AED 11.7 billion, a growth of 5.4%. Our net profit amounted to AED 1.1 billion and our investment reached a record level of AED
2.6 billion reflecting our confidence in the long term prospects of the Company. Our
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Emirate Integrated Telecommunications Company PJSC published this content on 23 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 February 2022 06:08:01 UTC.