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

Q1 2020 results highlights

Strong operational performance

7.0bn+15% YoY / +3% QoQ

2.3bn+20% YoY / +7 QoQ

1.3bn(19%) YoY / +11% QoQ

Revenue

(EGP bn)

EBITDA

(EGP bn)

Customers

(mn)

Net profit

(EGP bn)

Net profit margin of 19%, (781 bps) YoY,

+138 bps QoQ

Total revenue grew 15% YoY on higher

data revenue, representing c65% of total

growth followed by increased cable

projects and voice revenues.

Customer base grew on all fronts. Mobile

base growth included the distribution of

c380k new data SIMs among school

students (vs. 613k distributed in Q1 2019).

EBITDA grew 20% YoY at a margin of 33%

(+134 bps YoY) thanks to the high margin

revenue mix of data and cable projects.

Net profit landed at EGP 1.3bn, declining

19% YoY due to a 28% YoY decline in

investment income from Vodafone, which

offset the strong operational growth and

the FX gains.

Q1 2020: Data continues to lead the

growth

5.9+7% YoY

6.2+46% YoY

9.5+18% YoY

EBITDA margin of 33%, +134 bps YoY, +119 bps QoQ

4

Highlights of the main events

Vodafone Egypt developments

Jan 29: Vodafone Group announced that it has signed a

Memorandum of Understanding with Saudi Telecom

Company (STC) regarding the potential sale of Vodafone

group’s 55% ownership in Vodafone Egypt to STC for a cash

consideration of USD 2.4bn.

Subsequent to the quarter

14 May: China Mobile International, Facebook, MTN Global

Connect, Orange, STC, Telecom Egypt, Vodafone, and WIOCC

announced that they will partner to build 2Africa, which will be the

most comprehensive subsea cable to serve the African continent and

Middle East region. The consortium and Airtel also signed an

agreement with TE to provide a completely new crossing linking the

Red Sea & Mediterranean.

1 Jun: Telecom Egypt and Etisalat Misr signed two first of its kind

agreements relating to transmission and mobile-to-fixed

interconnection. The first agreement extends for three and a half years

with a total value of EGP 2bn, where Etisalat Misr for the first time signs

a long-term agreement including an annual commitment.

Additionally, the two companies have signed a mobile-to-fixed

termination agreement.

Feb 05: The FRA asserted that the potential acquisition is

subject to the provisions of Chapter Twelve of the Executive

Regulations of the Egyptian Capital Market Law No. 95/1992

regarding tender offers. This means that STC is obliged to

provide a mandatory tender offer to TE's shareholders with

the same price that they are offering Vodafone Group.

Feb 13: Vodafone Egypt contacted the Egyptian

Competition Authority (ECA) to determine whether Telecom

Egypt’s right of first refusal granted to the company in

Vodafone Egypt’s articles of association, if exercised,

would be compatible with the Competition Protection Law.

Feb 19: Telecom Egypt’s BoD approved the hiring of EFG

Hermes and Citi as its investment advisors and Al Tamimi

& Co. as its legal advisor to assess all of the Company’s

options regarding the VFE transaction.

5

Measures taken in response to the Covid-19 outbreak

Keeping all members of society connected

• Providing free fixed broadband

connectivity to all quarantine hospitals

• Dedicating free hotline numbers to

reach the Ministry of Health and

various clinics for consultations

• Linking Egyptian Cabinet HQs to

ministries using secure solutions

• Proactively supporting SMEs and

impacted companies by extending

billing cycles

• Offering free access to all e-learning

websites

• Providing full technical support for first-

year secondary school online

examinations

• Participating in the #Hemaya initiative

to support the homes of the elderly

and orphans to protect them against

Covid-19

• Distributing 62,500 food boxes to

needy families

• Encouraging employees to work from

home

• Sterilizing all buildings and transportation

vehicles

• Doubling fixed broadband and mobile

quotas for employees

• Raising security measures on TE’s intranet

and VPN

• Extending the grace period for

customers to pay landline invoices

• Promoting digital platforms and

providing some free transactions on

‘WE Pay ’

• Increasing fixed broadband quotas

by 20% through a government

subsidy

Health Government &

enterprises

Education

Customers CSR Employees

6

Post Covid-19 operational indicators

Positive indicators across the board

Selected operational KPIs

FBB data traffic Growth in FBB gross adds

MoM

25%

of our total fixed and

mobile customer base

installed ‘WE app’ as of

May 2020

16x

Jan-May 2020

growth in digital

payments

-18%

-4%

-10%35%

88%

23%*

Average internet

speed 3x

YoY growth in

average speed

as of Apr. 2020

24 Mbps

based on global

Ookla speed test

index as of Apr.

2020

35%

23%

-10%

10%

30%

50%

70%

90%

110%

Jan-20 Feb-20 Mar-20 Apr-20

MoM YoY

35%

23%

Mar-20 Apr-20

7

Revenue

(EGP mn)

EBITDA

(EGP mn)

Net profit

(EGP mn)

Operating Profit

(EGP mn)

Financial highlights

6,087

6,793

7,004

Q1 2019 Q4 2019 Q1 2020

+15.1%

+3.1%

1,903

2,133

2,283

Q1 2019 Q4 2019 Q1 2020

+20.0%

+7.0%

1,179

1,196 1,224

Q1 2019 Q4 2019 Q1 2020

+3.8%

+2.3%

1,615

1,179 1,312

Q1 2019 Q4 2019 Q1 2020

-18.8%

+11.3%

8

Customer base remains on an uptrend

Fixed broadband

( In 000’s)

Fixed line

( In 000’s)

Mobile

( In 000’s)

ARPU

(In EGP)

8,093 8,213

8,387

8,760

9,523

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

5,535 5,536

5,700

5,807

5,925

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

4,247 4,260

4,575

5,129

6,181

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

31.34 31.07 32.92 30.41 33.06

106.90 109.95 110.70 112.27

125.05

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

Fixed line ARPU

Fixed data ARPU

9

Revenue by business unit

Data, infrastructure and transmission revenues boost growth

Home &

Consumer DomesticEnterprise

International

Carriers Affairs

International

Customers & Networks

750

1,249

786

Q1 2019 Q4 2019 Q1 2020

+4.8%

-37.1%

2,401

2,817

3,131

Q1 2019 Q4 2019 Q1 2020

+30.4%

+11.1%

1,128

1,002

1,136

Q1 2019 Q4 2019 Q1 2020

+0.7%

+13.3%

1,309

894

1,248

Q1 2019 Q4 2019 Q1 2020

-4.7%

+39.5%

498

830

703

Q1 2019 Q4 2019 Q1 2020

+41.1%

-15.3%

Q1 2020

Home & Consumer Enterprise

Domestic International Carriers Affairs

International Customers & Networks

Q1 2019

Q1 2020 performance:

Top line grew 15% YoY on the back of higher data, voice revenue and cable revenues, contributing 65%, 22%, and

22% of total growth, respectively.

Retail climbed 24% YoY, representing 56% of top line and 84% of the total YoY growth.

Home & Consumer increased 30% YoY due to strong data performance (+32% YoY) and the +25% YoY hike in voice

revenues with the latter being owed to a growing YoY fixed and mobile customer base and ARPU. TE applied its entry

bundle “WE Ardy” (EGP 20/ month) to all fixed voice customers starting January 2020.

Enterprise grew 5% YoY mainly on higher voice and data revenue that offset the absence of complimentary access

projects in the quarter.

Mobile grew 53% YoY, contributing a low double digit to total retail revenue.

Wholesale reported a 5% YoY growth thanks to the rise in IC&N revenue (+41% YoY) on the recognition of a new

crossing agreement with Google.

Domestic witnessed a 5% YoY decline due to a one-off IRU sale in Q1 2019, without which, domestic revenue would

have increased 19% organically thanks to the increased demand of ISPs and MNOs for infrastructure services.

ICA came in almost flat YoY, despite the appreciation of the EGP against the USD YoY, due to increased traffic.

10

• NPAT came in at EGP 1.3bn, declining 19% YoY due to a 28% YoY decline

in investment income from Vodafone resulting from one-off costs and

provisions, which offset the strong operational growth and the FX gains.

• The effective interest rate came in at 7.4%, progressing on a QoQ and YoY

basis by 35bps and 280bps, respectively thanks to the debt currency mix.

• VFE’s net income dropped 28% on a QoQ and YoY basis due to one-off

costs and provisions.

• FX gains recorded EGP 443mn due to the depreciation of the USD against

the EGP leading to the revaluation of USD dominated facilities.

• Salaries came in flat QoQ, after normalizing the EGP 210mn reversal in ERP

costs reported in Q4 2019, and only 4% higher YoY, in spite of the annual

salary raise, thanks to the savings from the ERP.

• Advertising costs came in flat YoY, representing 2.8% of top line, 44bps

lower YoY.

Re

ve

nue

EBITD

AO

the

r

OPEX

Ne

t p

rofit

Exp

ense

s

No

n-o

pe

ratio

na

l

• EBITDA landed at EGP 2.3bn, growing 20% YoY with a margin of 33%

thanks to the high margin revenue mix of data and cable projects.

• D&A grew 38% YoY in line with our accelerated infrastructure expansions.

• Retail revenue rose 24% YoY driven by the growth in data and voice

revenue on an expanding customer base and healthy ARPU. This offset

the decline in other enterprise revenues (9% YoY, 61% QoQ), which are

expected to rebound during the year with the continuation of NUCA and

digital transformation projects

Income statement (Q1 2020)

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

**Adjusted for the ERP reversal of EGP 210mn in Q4 2019 and minor ERP cost in Q1 2020

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

In EGP mn Q1 2020 Q4 2019 Q1 2019 QoQ YoY

Revenue 7,004 6,793 6,087 3% 15%

Home 3,131 2,817 2,401 11% 30%

Enterprise 786 1,249 750 -37% 5%

Domestic 1,248 894 1,309 40% -5%

ICA 1,136 1,002 1,128 13% 1%

IC&N 703 830 498 -15% 41%

Employee cost (1,690) (1,480) (1,624) 14% 4%

Employee cost (Adj.) (1,688) (1,690) (1,624) 0% 4%

Call costs (1,370) (1,168) (1,134) 17% 21%

CoGS* (1,063) (1,483) (957) -28% 11%

S&D* (441) (342) (329) 29% 34%

G&A* (157) (187) (141) -16% 11%

EBITDA 2,283 2,133 1,903 7% 20%

Margin 33% 31% 31% 119 bps 134 bps

EBITDA (Adj.) 2,285 1,924 1,903 19% 20%

Margin 33% 28% 31% 430 bps 136 bps

Other (expense) / income 62 126 88 -51% -29%

Depreciation (944) (884) (647) 7% 46%

Amortization (177) (180) (164) -2% 8%

Operating profit 1,224 1,196 1,179 2% 4%

Margin 17% 18% 19% (13 bps) (190 bps)

Income from investments 469 645 647 -27% -28%

Net finance (cost) / income 322 2 394 17262% -18%

Net interest (exp.) / income (299) (292) (283) 3% 6%

Tax (402) (370) (321) 9% 25%

Net Profit 1,312 1,179 1,615 11% -19%

Margin 19% 17% 27% 138 bps (781 bps)

EPS 0.77 0.57 0.95 35% -18.8%

**

11

Operating Profit

Q1 2020 (YoY)

1,380

Note: All financial figures are in EGP million

1,179 1,224

343

66

128

310

27

917 2

Q1 19 Opearting

Profit

Revenue COGS Employee

Cost

SG&A Provisions Depr & Amort. Other

Income/Expense

Q1 20 Opearting

Profit

+4%

12

681

135 293

4,709

(463)

Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020

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)

353

501 533

1,399

741

12%12% 11%

23%

11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

-

200

400

600

800

1,00 0

1,20 0

1,40 0

1,60 0

Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020

Capex Capex/sales

827

1,663

1,172

2,085

2,574

97 25 26 25

27%

40%25%

34% 37%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

-

500

1,00 0

1,50 0

2,00 0

2,50 0

3,00 0

Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020

Capex License Capex/sales

1,313

1,824

1,280

1,977 1,897

Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020

* Including dividends received from Vodafone of EGP 4.6bn

*

* Including portion of the one-off settlement payment to Etisalat of EGP 847mn

*

13

-0.7x

0.4x

1.1x 1.1x

1.7x

Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020

Q1 2020

Access Network

Transmission

International cable

Customer care

Others

Balance sheet highlights

FCFE

(EGP mn)

Net debt

(EGP mn)

Net debt/ EBITDA

(Based on annualized EBITDA)

Breakdown of capex in-service

642

340

578

306

(37)

Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020

1,180 638

998 1,459 1,397

-3,342

-7,293

-13,854

-16,452 -16,992

2,161 6,656 12,855 14,993 15,595

FY 2016 FY 2017 FY 2018 FY 2019 Q1 2020

Net debt

Cash Total debt

14

Our performance in context

Revenue Growth

YoY

EBITDA margin (%)

CAPEX / sales (%)

Q1 2020

actual

15%

33%

In-service: 11%

Cash: 37%

Low double digit

Mid to high 20s

In-service: 30%

FY 2020

guidance

Thank you

Investor relations team

investor.relations@te.eg

Check our newly revamped website

ir.te.eg