Contents

Macro overview 5

Redefining our strategy 8

Our growth potential 12

9M 2019 highlights 25

Company snapshot 4

Financial highlights (2016-2018) 32

2

Disclaimer

This document has been prepared by Telecom Egypt (the “Company”) solely for the use at the analyst/investor presentation, held in connection with the Company. The information

contained in this document has not been independently verified. This document contains statements related to our future business and financial performance and future events or

developments involving Telecom Egypt that may constitute forward-looking statements. Such statements are based on the current expectations and certain assumptions of

Telecom Egypt's management, of which many are beyond Telecom Egypt's control. Such assumptions are subject to a number of risks and uncertainties. Should any of these risks or

uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results may (negatively or positively) vary materially from those

described explicitly or implicitly in the relevant forward-looking statement. Telecom Egypt neither intends, nor assumes any obligation, to update or revise these forward-looking

statements in light of developments, which differ from those anticipated.

This document does not constitute an offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares of the Company and neither it nor any

part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. This presentation has been made to you solely for information

purposes and is subject to amendment. This presentation (or any part of it) may not be reproduced or redistributed, passed on, or the contents otherwise divulged, directly or

indirectly, to any other person or published in whole or in part for any purpose without the prior written consent of the Company.

3

Company snapshot

Heritage transformed

4

TE’s incorporation

• Founded in 1854 with the first telegraph line in Egypt

• Incorporated in 1998 replacing the former Arab Republic of Egypt

National Telecommunication Organization (ARENTO)

• Listed in 2005 on the Egypt and London Stock Exchanges

• Acquired a 45% stake in Vodafone Egypt in 2003 to 2006

• Rebranded the retail business to WE in 2017 with the launch of

mobile services

Ownership: Highly diversified solid institutional shareholder base

Market Cap of USD 1.1bn | ETEL EY/ ETEL.CA (as of December- 2019)

Free float

composition

Breakdown of

institutions

Govern

ment;

80%

Free

float;

20%

[CATEG

ORY

NAME],

16%

[CATEG

ORY

NAME],

4%

USA 34%

Europe 22%

Egypt 20%

GCC 12%

South Africa

9%

ROW 3%

Macro overview

5

26%

11%

19%

29%

3%

12% Illiterate

Literate

Primary

Secondary

High school

University degree

Demographic indicators

Young population to continue to drive growth

Illiteracy ↓ from 30% in 2016

74% of population is literate

Population (mn) Age distribution (% of population)

Educational attainment (% of population) Unemployment rate (% of population)

Source: CAPMAS 2019 census

Source: CAPMAS 2017 census

Source: CAPMAS 2017 census

Source: Ministry of Finance

25%

19%

17%

15%

10%

8%

5% 2%

0-9

10-19

20-29

30-39

40-49

50-59

60-69

70+

c2mn new customers in

the market every year

61% of population

below 30 years

13.0% 12.8% 12.7% 12.0%

8.9%

2013/14 2014/15 2015/16 2016/17 2017/18

6

9.8%

11.3%

12.3%

15.3%

17.3%

19.3% 18.3%

17.3% 16.3%

14.8%

13.8% 12.8%

5.5% 7.2%

8.4%

12.4%

13.9%

25.9%

32.3%

31.9% 33.3%

19.9%

11.6%

10.9%

8.6% 8.3%

8.9%

6.4%

2.6%

4.4 4.3 4.2

5.3 5.5

5.9 6.0

Real GDP growth (%)

Macro indicators A broad set of healthy indicators across the year

Average USD to EGP rate

CBE discount rate Core inflation (YoY)

Source: IMF Source: Central Bank of Egypt

Source: Central Bank of Egypt Source: Central Bank of Egypt

7

7.8 7.9 8.1 8.9 8.9

14.8

17.8 18.1 17.8 17.8 17.7 17.8 17.9 18.0 17.6

17.1 16.6

Redefining our strategy

8

Adel Hamed

Managing Director &

Chief Executive Officer

Mohamed Shamroukh

Senior Vice President

Chief Financial Officer

Mohamed Abo-Taleb

Vice President

Chief Commercial Officer

Essam Abdeldayem

Vice President for Human

Resources

Seif Allah Mounib

Vice President for International

Wholesale

Our leadership team

Caliber from the mobile & fixed industries with local & int’l experience

Antar Kandil

Vice President

Chief Information Officer

Abdelsatar Elsheikh

Vice President for Regional

Affairs

Mohamed Alfowey

Vice President for Technical

Affairs 9

Heading towards…

A telco demonstrating its ability to seize new opportunities

The premium

digital hub Digital WE

The leading

ICT provider

Offering our customers the

best value data-centric

value proposition

Expanding from an

established international

route to an eminent regional

digital hub

Embracing digital

transformation internally to

empower our customers &

employees

Financial &

Operational

Excellence

Expand efficiency &

optimization measures to

enhance profitability

10

WE digital transformation Our strategy is driven by creating a comprehensive digital ecosystem to optimize

resources and boost the ICT economy

Digital transformation ecosystem

Data centers

& cloud IOT Digital

platforms OTT

Digital transformation process

WE digital

strategy &

objectives

Digital team &

governance

Internal digital

transformation

Digital

market

disruption

Complete

digital

inclusion

Apps

& solutions

Cloud platforms

World class data center

facilities

Network connectivity

Submarine cables & fiber connectivity

‘WE Digital’

Capitalizing on our assets

11

Our growth potential

12

[VALUE]

[VALUE]

[VALUE] [VALUE]

2015 2018 9M 2018 9M 2019

EGP 1.1bn

+39% YoY

EGP 7.1bn

+40% YoY

EGP 3.1bn

+26% YoY

FY 2018

EGP 11.3bn

+36% YoY

• Underpenetrated data market leading to a

growing fixed & mobile customer base

• Improved broadband connectivity and continuous

demand for higher usage enhances ARPU

• Protocols with government entities for

digital transformation:

− NUCA

− Ministries i.e. schools project

− Connecting governorates i.e. Port

Said project

• New cities

Retail segment

Growth drivers at a glance

• Growing mobile customer base

• Growing fixed voice customers driven

by fixed broadband connectivity

Voice Data

Other

Retail revenue growth

( in EGP mn)

24%

27%

CAGR

13

Best value

recharge

platform

‘WE Internet’

(1st FBB revamp) +

postpaid mobile

launch

Widening our retail portfolio

Moving beyond traditional telecom services

Sep 2016 Sep 2017 Feb 2018

Nov 2018 Aug 2018 Apr 2018

July 2019 Nov 2019 Coming next

4G mobile

license

acquisition

Prepaid

mobile

launch

Fully convergent

product

‘Indigo Plus’

‘Level Up’

PlayStation

packages

‘WE SPACE’

(2nd

FBB revamp)

‘WE Pay’

WE digital wallet

‘WE IPTV’

1st nationwide

IPTV license

14

WE SPACE

A new shift in our fixed broadband offering

Comparison of

the entry level bundle

Up to 30 Mbps

EGP 120

140 GB

July 2019

Up to 5 Mbps

EGP 110

100 GB

April 2018

Speed

Price

Quota

Launch date

15

3,791

4,439

5,197

6,535

7,162

2,809

3,382

4,070

5,237

5,700

982 1,057 1,127 1,297

1,463

2015 2016 2017 2018 9M 2019

TE

Others

Market fixed broadband subscribers

(in 000’s)

Market fixed voice and data household penetration

WE fixed voice

Fixed services

Growing customer base with healthy ARPU

WE fixed broadband

16

28.7% 27.7%

30.0% 32.4%

34.1%

16.6% 19.0%

21.8%

26.9% 29.1%

2015 2016 2017 2018 9M 2019

Fixed line

Broadband

6,555 6,465

7,145

7,865

8,387

31.1

28.7

29.6

30.5

31.9

27.0

29.0

31.0

33.0

35.0

37.0

39.0

0

1,0 00

2,0 00

3,0 00

4,0 00

5,0 00

6,0 00

7,0 00

8,0 00

9,0 00

2015 2016 2017 2018 9M 2019

Subscribers ( in 000's )

ARPU

2,809

3,382

4,070

5,237

5,700

76.0

83.1

98.3

103.5

110.1

70.0

80.0

90.0

100.0

110.0

120.0

130.0

0

1,0 00

2,0 00

3,0 00

4,0 00

5,0 00

6,0 00

2015 2016 2017 2018 9M 2019

Subscribers ( in 000's )

ARPU

2,408 2,244 2,462 3,108

2,290 2,668

2,625 3,631

5,049

7,085

5,110

6,816

440

741

779

1,086

812

733

2015 2016 2017 2018 9M 2018 9M 2019

Other

Data

Voice

21%

25%

36%

24%

Retail revenue growth driven by data

(in EGP mn)

Fixed services (cont’d)

Accelerating our fiber replacement project to grasp market opportunities

70% 85%

2018a 2019e 2020f

100%

Fiber access network capacity

(in 000’ homes)

% of households reached with fiber

(excluding the last mile)

17

2,140

5,180

9,692

12,608

17,567

25,149

2014 2015 2016 2017 2018 9M 2019

2,204

3,096

4,456

6,370

4,596

6,182

421

536

593

716

514

635

2015 2016 2017 2018 9M 2018 9M 2019

Managed Services

Broadband

Data revenue

(in EGP mn)

38%

39%

40% 33%

102%

114% 117%

102% 100%

33% 34% 37% 39% 42%

FY 2015 FY 2016 FY 2017 FY 2018 9M 2019

Voice penetration

Data penetration

38,354 39,622 44,082 39,647 39,850

33,056 33,883 34,117

29,475 28,292

22,236

33,900 32,300

27,500 26,500

2,300

3,861 4,575

2015 2016 2017 2018 9M 2019

Mobile market subscribers

(In 000’s)

Mobile market

A growing customer base

*Etisalat restated its customer base starting FY 2016

3.3

Source: Operators’ disclosure

WE's mobile subscribers

(In 000’s)

Mobile data market subscribers

(in 000’s)

Source: MCIT & Operators’ disclosure

Mobile market voice and data penetration

18

3,589

3,861

4,247 4,260

4,575

Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

26,300 28,650

32,790 35,060

38,170

3,820 3,280

3,260 3,210

3,560

FY 2015 FY 2016 FY 2017 FY 2018 9M 2019

USB

Mobile data

Source: MCIT

EGP 3.5bn

+66% YoY

EGP 4.4bn

-9% YoY

• Largest international network footprint in the

region

• Preferred East-West international route

• Positioning Telecom Egypt as an eminent digital

hub

+39% YoY

Wholesale segment

Growth drivers at a glance

• Sole provider of international calls to MNOs

• 4-5 year agreements

Domestic

International Carrier Affairs

International Cables &

Networks

• Egypt’s infrastructure builder

• 3-10 year agreements

• Indirect play on data market growth

Wholesale revenue

( in EGP mn)

EGP 3.6bn

+8% YoY

FY 2018

EGP 11.5bn

+12% YoY

6,711

11,491

9,145 8,795

2015 2018 9M 2018 9M 2019

-4%

20%

CAGR

19

*

* Including Bharti deal’s EGP 1.6bn recognized in Q3 2018

Egypt

Iraq

Indonesia

Thailand

Myanmar

Morocco

Algeria

France

Qatar

India

Pakistan

Iran

Oman

Yemen

Saudi Arabia

Turkey

Syria

Lebanon

Sudan

Ethiopia

Somalia

Libya

Mozambique

Madagascar

Tanzania

Kenya

Greece

Tunisia

Djibouti

Sri Lanka

Jordan

Maldives

Taiwan

Brunei

Vietnam Philippine

Japan Korea

Belgium

UK

Singapore

Germany

China

Cyprus

Italy

Portugal

Eritrea

Bangladesh

Australia

U.A.E

Malaysia

SEAMEWE-3

SEAMEWE-4

FLAG FALCON-HAWK

IMEWE

EIG

SEACOM

TATA

ALETAR/BRYTAR

TE North

GBI

Taba-Aqaba AAE1 SEAMEWE -5

Alexandros

Trans border Terrestrial Cables with Libya & Sudan MENA Cable

Our cable network

offers reach and reliability

20

582 410

1,099 801 619 621

2,396 2,794

3,769

3,623

2,728 2,760

2015 2016 2017 2018 9M 2018 9M 2019

International Direct Dialing (IDD)

Transit

76 41

62 45 35 36

311

277 212

204

154 162

2015 2016 2017 2018 9M 2018 9M 2019

International Direct Dialing (IDD)

Transit

47 62 338 207 207

605

165 236

368 386 280

384

467

655

961

2,316

2,124

661

128

173

439

588

435

505

2015 2016 2017 2018 9M 2018 9M 2019

Cable Projects

Ancillary Services (O&M)

Capacity Sales

International Customer Support

6 6 19 12 12

35 21 23

21 22 16

23

61 65

54

130

120

39

17 17 25

33

25

30

2015 2016 2017 2018 9M 2018 9M 2019

Cable Projects

Ancillary Services (O&M)

Capacity Sales

International Customer Support

Int’l Carriers revenue breakdown in EGP

(in mn)

International services

Growth across the majority of our business lines

Int’l Customers & Networks revenue breakdown in EGP

(in mn)

Int’l Carriers revenue breakdown in USD*

(in mn)

Int’l Customers & Networks revenue breakdown in USD*

(in mn)

* Based on full year and 9-month average USD exchange rates * Based on full year and 9-month average USD exchange rates 21

Agreements with domestic MNOs

Securing long-term revenue streams

Securing longer-term agreements with

domestic mobile operators

Boosting our wholesale revenue stream by

monetizing our infrastructure investments Our main goals 1 2

International Services 12bn

1.5bn Transmission Services 10.85bn

Transmission Services

International Services 3bn

3bn

1.5bn

International Services 4bn

Transmission Services 1.5bn

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2028

1.5bn

1.5bn

3bn

22

• TE reached an agreement with Vodafone to collect

EGP 5.5bn, representing +90% of its share of

Vodafone’s retained earnings as of Mar 18.

• EGP 4.8bn was received in March 2019 while the

remaining EGP 0.7bn will be received in June 2020.

• The proceeds received in March were used to settle

TE’s EGP denominated debt.

Vodafone investment pays off in 2019

Representing +90% of our share as of Mar 2018

23

1,118

2,201

1,551

2,188

2015 2018 9M 2018 9M 2019

Income from Vodafone

(EGP mn)

25%

CAGR

41%

* Including the EGP 0.5bn from the VIS sale to Vodafone group.

*

EGP 4.8bn

EGP 0.7bn

EGP 0.5bn

Dividends distribution

• TE received an extraordinary dividend of EGP

0.5bn, representing its share of the Vodafone

International Services (VIS) sale to Vodafone group.

• The proceeds were used to finance the extension

of TE’s early retirement program (ERP).

March 2019

June 2020

November 2019

2019 agreements & events

Strategic moves, paving the way for the future

Announced a change in the BoD by a decree from

the Egyptian Prime Minister.

2019 business calendar

Signed an agreement with Banque Misr to launch

‘WE Pay’. The service is designed to enable

customers to safely and securely send, receive and

store money using a smartphone application.

Announced the BoD’s approval to proceed with a

voluntary early retirement program for TE

employees.

Signed high-speed bitstream services agreement

with Orange Egypt.

Telecom Egypt’s Ordinary General Assembly (GA)

appointed its BoD for a new term of three years. It

approved the change of two independent board

members.

Signed two virtual fixed voice agreements and two

bitstream agreements with Etisalat Misr to enable it

to provide fixed voice services, utilizing Telecom

Egypt’s network, and new VDSL technology to its

customers.

Signed two 10-year transmission and infrastructure

agreements with Vodafone Egypt valued at EGP

10.85bn and reached an agreement on dividend

distribution.

Signed MOUs with Huawei, Ericsson, Nokia, CISCO

and Microsoft at MWC Barcelona 2019 to assess

and develop TE’s network.

Signed a binding letter of intent (LoI) with PEACE

and its parent HENGTONG OPTIC-ELECTRIC valued

at USD 20mn offering PEACE redundancy in

exchange for competitive pricing on fiber optic

cables.

Telecom Egypt and the Administrative Capital for

Urban Development (ACUD) signed an agreement

to build and operate telecom networks in the new

administrative capital and to provide smart and

security services networks.

Published an all-encompassing integrated annual

report about 2018 operations and strategic

directions.

Signed a landing party agreement with Pakistan &

East Africa Connecting Europe (PEACE) Cable

International Network Co. and PCCW Global valued

at USD 45mn.

Signed a strategic partnership agreement with

Cable Network Egypt (CNE) to provide Telecom

Egypt’s customers with Internet Protocol television

services (IPTV) in collaboration with various content

providers.

24

WE launched its digital wallet under the

commercial name 'WE Pay', enabling its customers

to enjoy a wide-range of electronic payment

facilities.

The company launched ‘WE SPACE’, a new shift in

its fixed broadband offering in line with its large

project to develop its network capabilities and

improve the quality of internet services in Egypt.

Jul

No

v

Se

p

Ap

r M

ar

Jul

Fe

b

Ja

n

Ma

r

25

9M 2019 highlights

EBITDA margin of 19%

Adjusted margin of 27%

Net profit margin of 17%

Adjusted margin 23%

* Adjusted performance: Q2, Q3 & 9M 2019 are adjusted for ERP, Q3 & 9M 2018 are adjusted for Bharti deal.

9M 2019 results highlights

Strong top line performance

19.0bn +10% YoY

Adjusted 21%

3.7bn -31% YoY

Adjusted 5.2bn

+6% YoY

3.2bn -8% YoY

Adjusted 4.4bn

+39% YoY

Revenue

(EGP bn)

EBITDA

(EGP bn)

Customers

(mn)

Net profit

(EGP bn)

Fixed

Mobile

Voice Data

8.4 +11% YoY

5.7 +15% YoY

4.6 +27% YoY

Consolidated revenue (excl. the Bharti deal

from 2018) climbed 21% YoY on a 35% YoY

growth in data revenue and a 23% YoY

increase in infrastructure revenue.

Customer base grew across all segments.

TE extended its early retirement program (ERP)

to 3000 employees with a total cost of EGP

1.5bn.

EBITDA margin came in at 19%, pressured by

the ERP. Excluding its cost, EBITDA would reach

EGP 5.2bn, recording a margin of 27%, in line

with our full year guidance.

Net profit landed at EGP 3.2bn, declining 8%

YoY, while adjusted net profit reached EGP

4.4bn with a margin of 23% supported by FX

gains, higher investment income from

Vodafone & enhanced underlying operational

performance.

9M 2019: monetizing our network investment

* FBB customer base cleanup started in Q2 2019 & ended in Q3 2019

26

1 Education reform program

Pha

se

1

Pha

se

2

Q3 2018: Connected 2,550 schools with fiber within 2

months, recognizing EGP 482mn.

Q1 2019: Provided data SIMs for students in their first year

of high school.

2 Port Said digital transformation

pilo

t

Pha

se

1

Q1 2019: Connected government service buildings in

Port Said with fiber to provide citizens with digital

services.

Connecting 5 more governorates with fiber (timeline to

be agreed upon later within the 2 year timeframe of the

protocol)

613k data SIMs

4 days to distribute the SIM cards

8,000

TE employees

working on the

project

670 buildings

connected

service offices

included

700

further monetization

from service

subscriptions

further monetization

from connectivity

subscriptions

Projects highlights

Further steps towards nation-wide digital transformation

The offer: Data bundle price is EGP 5 for the 1st GB then each student has to

subscribe to one of WE’s existing data bundles

EGP 86mn recognized

revenue

27

In EGP mn 9M 2019 9M 2018 YoY Q3 2019 Q2 2019 Q3 2018 QoQ YoY

Revenue 19,012 17,358 10% 6,316 6,609 7,233 -4% -13%

Home 7,657 5,850 31% 2,717 2,539 2,085 7% 30%

Enterprise 2,560 2,363 8% 959 851 1,151 13% -17%

Domestic 3,260 2,753 18% 1,010 941 788 7% 28%

ICA 3,381 3,347 1% 1,111 1,141 1,111 -3% 0%

IC&N 2,154 3,046 -29% 519 1,137 2,099 -54% -75%

Revenue (Adj.) 19,012 15,753 21% 6,316 6,609 5,628 -4% 12%

Employee cost (6,277) (3,637) 73% (2,066) (2,587) (1,263) -20% 64%

Employee cost (Adj.) (4,801) (3,638) 32% (1,594) (1,583) (1,263) 1% 26%

Call costs (3,664) (3,172) 16% (1,306) (1,224) (1,079) 7% 21%

CoGS* (3,723) (3,807) -2% (1,352) (1,413) (2,226) -4% -39%

CoGS* (Adj.) (3,723) (2,668) 40% (1,352) (1,413) (1,087) -4% 24%

S&D* (1,157) (1,018) 14% (336) (492) (455) -32% -26%

G&A* (491) (394) 25% (192) (158) (174) 22% 10%

EBITDA 3,700 5,329 -31% 1,063 735 2,036 45% -48%

Margin 19% 31% (1,124 bps) 17% 11% 28% 572bps (1,132 bps)

EBITDA (Adj.) 5,177 4,864 6% 1,535 1,739 1,571 -12% -2%

Margin 27% 31% (365 bps) 24% 26% 28% (201 bps) (361 bps)

Other (expense) / income 195 225 -14% 132 (25) 84 620% 58%

Depreciation (2,025) (1,515) 34% (800) (577) (578) 39% 38%

Amortization (517) (446) 16% (191) (162) (146) 18% 31%

Operating profit 1,353 3,593 -62% 204 (30) 1,395 777% -85%

Margin 7% 21% (1,358 bps) 3% 0% 19% 369 bps (1,606 bps)

Income from investments 2,188 1,551 41% 1,063 478 677 122% 57%

Net finance (cost) / income 1,113 (290) 484% 355 365 (132) -3% 370%

Net interest (exp.) / income (709) (585) 21% (261) (166) (181) 57% 44%

Tax (720) (758) -5% (270) (129) (311) 109% -13%

Net Profit 3,220 3,506 -8% 1,089 516 1,448 111% -25%

Margin 17% 20% (326 bps) 17% 8% 20% 944bps (278 bps)

EPS 1.89 2.05 -8% 0.64 0.30 0.85 111% -24.8%

Income statement (9M 2019)

Re

ve

nue

EBITD

A

Othe

r

OPEX

Ne

t

pro

fit

Exp

ense

s

No

n-o

pe

ratio

na

l

28

• Adjusted revenue rose by 21% YoY owing to higher data revenues, which

represented 49% of total growth.

• Adjusted wholesale revenue grew 17% YoY thanks to the cable projects

recognized in Q2 2019 and the continuous demand for infrastructure

services by the domestic operators.

• Excl. the ERP, employee costs rose on the reintroduction of the loyalty

pension fund, the bonus in Q1 and the annual increase in salaries.

• Advertising costs declined 4% YoY representing 3.5% of total revenue.

• Call costs remained relatively stable at 19% of revenue.

• Adjusted EBITDA (excl. the ERP) grew 6% YoY in line with the revenue

growth.

• Adjusted EBITDA margin came in at 27% in line with our full year

guidance.

• D&A rose 30% YoY in line with our accelerated network expansion

program.

• Income from VFE witnessed a hike due to organic growth, the reversal of

dispute related provisions and the recognition of the gain from the sale of

VIS.

• The effective interest rate continued its improvement to reach 8.1% in 9M

2019 compared to 8.9% last year.

• FX gains totaled EGP 1.3bn, which offset the 21% increase in net interest

expense.

• Excluding Bharti from 9M 2018 and ERP from 9M 2019, net profit would

have increased by 39% YoY mainly on FX gains, higher investment income

from Vodafone and enhanced operational performance.

Adj. refers to adjusted

* COGS excludes employee costs & call costs, S&D and G&A exclude employee costs & D&A

Note: All financial figures reported are based on the consolidated financials under The Egyptian Accounting Standards

Adjusted performance: Q2, Q3 & 9M 2019 are adjusted for ERP,

Q3 & 9M 2018 are adjusted for Bharti deal

9M 2019

Home & Consumer Enterprise

Domestic International Carriers Affairs

International Customers & Networks

9M 2018

3,004

3,304

3,571

2,753

3,260

2016 2017 2018 9M 2018 9M 2019

+18.8%

+8.1% +18.4%

Revenue by business unit (9M 2019)

Retail services & specifically data drive revenue growth

Home &

Consumer Domestic Enterprise

International

Carriers Affairs

International

Customers & Networks

29

3,203

4,868

4,424

3,347 3,381

2016 2017 2018 9M 2018 9M 2019

+38.1%

-9.1% +1.0%

4,228

5,662

8,064

5,850

7,657

2016 2017 2018 9M 2018 9M 2019

+90.8%

+42.4% +30.9%

2,389

2,627

3,215

2,363

2,560

2016 2017 2018 9M 2018 9M 2019

+34.6%

+22.4% +8.3%

1,126

2,106

3,496

3,046

2,154

2016 2017 2018 9M 2018 9M 2019

+210.4%

+66.0% -29.3%

2,609 3,312

6,088

8,028

6,539 5,294

1,420 780 723

21%

24%

33% 35%

34%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

-

1,00 0

2,00 0

3,00 0

4,00 0

5,00 0

6,00 0

7,00 0

8,00 0

9,00 0

2015 2016 2017 2018 9M 2019

Capex License Capex/sales

147

(2,603) (2,456)

(5,075) (4,946)

(184)

2015 2016 2017 2018 9M 2018 9M 2019

1,597

4,338 4,649

3,496

961 1,361

1,704 860

9M 2018 9M 2019

2,221

2,665

Cash flow analysis

Cash capex

(EGP mn)

Net cash from operating activities

(EGP mn)

Note: All financial figures reported are based on consolidated financials under The Egyptian Accounting Standards.

FCFF

(EGP mn)

In-service capex

(EGP mn)

30

* **

* Including the one-off settlement payment to Etisalat of EGP 919mn and the EGP 784mn representing the

settlement of MENA cable loan

** Including ERP cost of EGP 860mn

*

** Including dividends received from Vodafone of EGP 5.25bn

* Including the one-off settlement payment to Etisalat of EGP 919mn and the EGP 1.78bn for the acquisition of MENA cable

*

**

3,159

4,731

7,336

8,499

6,276

5,294

3,340

26%

34%

40%

37%

33%

10%

20%

30%

40%

50%

60%

70%

-

1,00 0

2,00 0

3,00 0

4,00 0

5,00 0

6,00 0

7,00 0

8,00 0

9,00 0

2015 2016 2017 2018 9M 2019

Capex License Capex/sales

62

(97)

1,191

797

969

782

2015 2016 2017 2018 9M 2018 9M 2019

69%

16%

5%

5% 4% 1%

Access Network

Transmission

International cable

Customer care

IT

Others

Balance sheet highlights

FCFE

(EGP mn)

Net debt

(EGP mn)

Net debt/ EBITDA

(Based on annualized EBITDA)

Breakdown of in-service capex

* Including the one-off settlement payment to Etisalat Misr of EGP 919mn

*

*

FY 2018

31

2,587 1,180

638 998 1,375

-389 -3,342 -7,293

-13,854 -15,118

-2,197 2,161 6,656 12,855 13,743

2015 2016 2017 2018 9M 2019

Net debt

Total debt Cash

-0.6x

0.6x

1.3x

2.1x 2.0x

2015 2016 2017 2018 9M 2019

*

* Normalizing EBITDA for ERP cost of EGP 1.5bn.

Financial highlights (2016-2018)

32

Revenue

(EGP mn)

EBITDA

(EGP mn)

Net profit

(EGP mn)

Operating Profit

(EGP mn)

Financial highlights

Double digit EBITDA growth helps maintain net profit in spite of heavy investments

13,950

18,567

22,771

FY 2016 FY 2017 FY 2018

+63.2%

+22.6%

3,801

5,184

6,130

FY 2016 FY 2017 FY 2018

+61.3%

+18.3%

1,991 2,023

3,560

FY 2016 FY 2017 FY 2018

+78.8%

+76.0%

2,670

3,052

3,484

FY 2016 FY 2017 FY 2018

+30.5%

+14.2%

33

* EPS after appropriations

Historical 3 year income statement summary

Note: All financial figures reported are based on the consolidated financials under the Egyptian Accounting Standards

in EGP mn 2016 2017 2018 Growth y/y

2017 2018

Revenue 13,950 18,567 22,771 33% 23%

Home & Consumer 4,228 5,662 8,064 34% 42%

Enterprise 2,389 2,627 3,215 10% 22%

Domestic Wholesale 3,004 3,304 3,571 10% 8%

International Carriers 3,203 4,868 4,424 52% -9%

International Customers & Networks 1,126 2,106 3,496 87% 66%

Total employee cost (4,629) (5,061) (5,216) 9% 3%

Call costs (2,587) (4,152) (4,295) 60% 3%

COGS (excl. above expenses) (2,229) (3,138) (5,116) 41% 63%

S&D (excl. salaries, D&A) (300) (533) (1,388) 77% 161%

G&A (excl. salaries, D&A) (403) (499) (624) 24% 25%

EBITDA 3,801 5,184 6,130 36% 18%

Margin 27% 28% 27% 67 bps (100 bps)

Other (income)/expenses (275) (1,056) 147 284% -114%

Depreciation (1,458) (1,841) (2,096) 26% 14%

Amortization (77) (264) (620) 243% 135%

Operating profit 1,991 2,023 3,560 2% 76%

Margin 14% 11% 16% (338 bps) 474 bps

Income from investments 668 2,337 2,201 250% -6%

Net finance (cost)/income 574 (382) (288) -167% -25%

Net interest (expense)/income 120 (264) (1,024) -321% 288%

Tax (680) (659) (958) -3% 45%

Net profit 2,670 3,052 3,484 14% 14%

Margin 19% 16% 15% (270 bps) (114 bps)

EPS 1.20 1.38 1.61 14% 17% *

34

0.61

0.41

1.65

(0.11)

0.36

0.56

0.75

1.00

0.25 0.25

(0 .30)

(0 .10)

0.1 0

0.3 0

0.5 0

0.7 0

0.9 0

1.1 0

1.3 0

1.5 0

1.7 0

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

EPS

DPS

106%

54%

83%

18% 16%

92%

182%

60%

236%

69%

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Consolidated

Standalone

0.53

1.40

1.20

1.38

1.61

0.61

0.41

1.65

-0.11

0.36

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Consolidated

Standalone

0.83

1.76

1.56

1.79

2.04

0.89

0.74

1.99

0.27

0.73

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Consolidated

Standalone

Dividend analysis

We aim to distribute a continuous stream of dividends, balancing distribution with

the reinvestment of our cash flows in Capex, which we view as the pillar for growth

EPS after appropriations

(in EGP)

EPS before appropriations

(in EGP)

Note: All financial figures reported are based on consolidated & standalone financials under The Egyptian Accounting Standards.

Payout ratio

(%)

Dividend distribution on standalone financials (based on regulations)

(in EGP)

35

9M 2019

Adjusted

Our performance in context

Adjusted KPI’s meet our guidance

Revenue growth YoY

EBITDA margin (%)

CAPEX / sales (%)

9M 2019

actual

10%

19%

In-service: 33%

Cash: 34%

Mid to high

single digit

Mid to high 20s

In-service: 30%

21%

27%

In-service: 33%

Cash: 34%

FY 2019

guidance

2018

actual

23%

27%

In-service: 37%

Cash: 35%

36 * Adjusted for the revenue growth for Bharti deal in 2018 and EBITDA margin for the early retirement program total cost of EGP 1.5bn.

*

Thank you

Investor relations team

investor.relations@te.eg

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