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TRANSCRIPT
Investor presentation
March 2018
Content
Macro overview 4
Redefining our strategy 8
Our growth potential 18
Financial analysis 24
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
Macro overview
Demographic indicatorsYoung population to continue to drive growth
Illiteracy ↓ from 30% in 2016
74% of population is literate
13.2%
13.0%
12.8%12.7%
12.0%
2012/13 2013/14 2014/15 2015/16 2016/17
26%
11%
19%
29%
3%
12%Illiterate
Literate
Primary
Secondary
High school
University
degree
5
Population (mn) Age distribution (% of population)
Educational attainment (% of population) Unemployment rate (%)
Source: CAPMAS 2017 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 years85.9
87.7
92.2
94.2
96.2
2013 2014 2015 2016 2017
9.9%8.8% 9.1%
7.7% 7.2% 8.1%5.5%
7.2%8.4%
12.4%13.9%
25.9%
32.3% 31.9%33.3%
19.9%
Macro indicatorsSome challenges to navigate through
2.9
4.4 4.34.1
4.5
5.3
2014 2015 2016 2017e 2018f 2019f
7.1 7.7 8.0 8.9 8.9
14.3
17.8 18.1 17.8 17.7
2014 2015 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17
6
Real GDP growth (%) USD to EGP
CBE discount rate Core inflation (YoY)
Source: IMF Source: Central Bank of Egypt
Source: Central Bank of Egypt Source: Central Bank of Egypt
11.7%11.3%
11.9% 11.8% 11.6% 11.6% 11.6% 11.8%
12.5%
13.4%13.9%
16.3%16.6%
18.0%
19.6% 19.8%
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17
Telecom market
7
TE leads in fixed and is not late to the mobile data market
Finland
Denmark
Australia
Indonesia
Korea Hong Kong
KSA
MalaysiaBrazil
UK
Oman
Spain
Italy
Gabon
Germany
Thailand
Russia
Tunisia
Poland
Tanzania
SA
Portugal
Turkey
Egypt
Algeria
Jordan
Morocco
Bangl.
Pakistan
Libya
Senegal
KenyaMali
Ivory Coast
0%
20%
40%
60%
80%
100%
0 10 20 30 40 50 60 70
HH
FB
B p
en
etr
atio
n (%
)
GDP (PPP) per capita ('000 USD)
SingaporeFinland
Bahrain
Kuwait
DenmarkEstonia
Indonesia
Liberia
Hong Kong
KSA
Rwanda
UAE
Malaysia
BrazilUK
Oman
Spain
Italy
Gabon
Germany
Thailand
Russia
Tunisia
Poland
Tanzania
SAPortugal
Turkey
Egypt
Algeria
Jordan
Morocco
Sudan
Ghana
Iraq
Ireland
SenegalKenya
Mali
Ivory Coast
0%
20%
40%
60%
80%
100%
120%
140%
160%
0 10 20 30 40 50 60 70 80
Mo
bile
data
pen
etr
atio
n (%
)GDP (PPP) per capita ('000 USD)
Source: Central Bank of EgyptSource: Central Bank of Egypt
Household fixed broadband penetration compared to peers Mobile data penetration compared to peers
Redefining our strategy
9
Operational highlights
Mobile service launch
in September 2017Reaching 2.3m
mobile customers
Increasing
minimum speed for
FBB to 4 Mbps for
60% of customers
4 wholesale agreements with
the 3 local mobile operators to
secure long-term revenue
Sealed a site
sharing
agreement with
Etisalat
Completed a national
roaming agreement
with Etisalat and MoU
with Orange
Customer care focus yielding
results: mobile NPS above int’l
benchmark & significant
improvement in fixed
broadband NPS
Fixed broadband
customers grew
20%reaching 4m & a
market share of
78% Fixed voice revenue
resuming growth on
11% increase in
customers
Fixed data
revenue
grew
42%
Home data
ARPU
growth of
19%
Enterprise
data ARPU
growth of
11%
Launching “WE”
complete mobile
recharge platform
Int’l capacity
mega deals with
PCCW and STC
9
Ahmed El Beheiry
Managing Director &
Chief Executive Officer
Mohamed Shamroukh
Chief Financial Officer
Mohamed Abo-Taleb
Chief Commercial Officer
Yasser Rashwan
Acting Chief Technology Officer
Antar Kandil
Chief Information Officer
Hany Abdel Menem
Chief Customer Care Officer
Adel Hammed
Chief International &
Wholesale Officer
Our leadership teamTelecom Egypt now boasts caliber from the mobile & fixed industries with both local & international experience
1010
Redefining our strategic pillars
Alignment of
business and
technology
objectives
Excellence in
financial &
operational
planning
Process
efficiency &
structural
optimization
Leadership in
data through
customer focus
and innovation
1. Revolutionizing the consumer data world by offering data centered integrated and customized offers
2. Empowering the enterprise customers especially SMEs by providing integrated solutions and IoT products
3. Fortifying the leading wholesale footprint to become a regional hub & avail competitive infrastructure models
1. Institutionalizing the decision supportfunction to drive a new financial era,where savings and synergies areachieved and commercial decisionsmeasured dynamically pre- & postproduction
2. Longer-term procurement planning tooptimize inventory and lead time todelivery
3. Devising a plan to monetize non-operating assets
1. Business driving technology KPIs andjustify return on investment
2. Technology enabling the launch of newinnovative data offerings
3. IT & Customer systems becoming a keydifferentiator in customer experience
4. Digital transformation to improveexperience, influence customers andreduce unnecessary costs
1. Developing cross division processes
2. Devising a plan to best utilize humancapital and reach an optimalheadcount through “innovativesolutions”
3. Empowering middle management bysegregating authorities and enhancingbylaws with the aim to decentralizeand expedite decision making.
Introducing our “LEAP” strategyThere’s no time to walk
11
Our media strategyGetting closer to our customers
1212
Brand Repositioning
Sponsorships
Commercial & Tactical Product Launch
- Invaded the national and emotional market position through a successful 360 degree ATL
launch campaign
- Adopted and owned a down-to-earth brand tone of voice which encouraged inclusion
and unity to all walks of life in Egypt
- All elements of the campaign from brand name, through color palates all the way to final
ATL campaign focused on closeness to our segments and our country
- Adopted a sponsorship strategy which matches WE’s newly introduced brand
character and tone of voice
- Phase 1 summer 2017 sponsorships and activations successfully introduced our
new image and brand aesthetics to multiple segments of potential subscribers,
paving the way for the full commercial launch of the WE brand
- Full focus on opportunities which unites Egyptians, with our Football National
team in the anchor position within this strategy
- Build on the concept of unity and inclusion through the AGDA3 KART product launch
Campaign, giving Egyptians a recharge platform which always gives more benefits to our
subscribers
- Introduced WE’s first brand ambassador, Karim Abdel Aziz, who is a perfect fit for our
selected campaign message and brand tone of voice
- Focused on creative digital executions which galvanized the top of mind awareness within
out targeted segments
Customer service & experienceOur new brand identity & values revolves around customer focus
13
HistoryOrganization driven by technicians
April 2017Adoption of customer centric approach
July 2017New mobile centre creation
Sep. 2017New brand with new customer focus
OngoingExtending transformation strategy to fixed segments
Operational
excellence
Human CapitalNew era of
customer focus
Digital Support
boost
Sep-17 Oct-17 Nov-17 Dec-17
Mobile NPS
Global benchmark
Customer care strategic pillars
Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18
Fixed broadband NPSGlobal benchmark
NPS = % of Promoters - % of Detractors
Mobile launch customer offerGo to market strategy: Simple, transparent, best value for money
14
This is the default
PAYGO tariff plan
for WE.
The tariff is a flat
rate of EGP 0.12 for
all minutes, SMS
and MBs.
All internet plans offer double
the quota for 6 months:
Internet 10 (EGP 10 - 1GB).
Internet 20 (EGP 20 - 2.5GB).
Internet 40 (EGP 40 - 6GB).
Internet 100 (EGP 100 -
18GB).
Internet 200 (EGP 200 -
40GB).
WE offers two control
bundles at EGP 20 and
EGP 40, giving the
customer 800 or 2000
units to be used for
voice, data or SMS. For
a 6 months period the
quotas are doubled.
Latest updates This year’s calendar focused on the mobile launch and striking long-term agreements with local operators
Date Vodafone Egypt Etisalat Misr Orange EgyptCorporate
April 2017
May 2017
Nov. 2017
Oct. 2017
Dec. 2017
Feb. 2018
MOU on national roaming and
int’l voice services
MOU on national roaming
Agreement on national roaming
and int’l voice services to 2022
Renewal of int’l voice agreement
to 2022
Site sharing agreement for 10
years2 mega cable
capacity deals
with STC &
PCCW
Renewal of transmission &
infrastructure agreement to 2020
Agreement with Orange Data to
2020 providing bitstream services
Settlement of legal disputes
regarding interconnection,
transmission & int’l services
Settlement of legal disputes
regarding international voice
services
Sept. 2017
June 2017
Jan. 2017
WE reached 1 million mobile
customers
Launch of mobile services under the
new brand name “WE”
Launch of WE
new prepaid
recharge
platform
New IR portal launched
Deals with others
15
No more legal overhangsTo clean its balance sheet Telecom Egypt took the hit of a 10 year conflict settlement in one quarter
Dispute duration:
Services under
dispute:
Cash flow impact:
Local interconnection, transmission
and international services
Orange to pay EGP 74m
Sep. 2008 to Dec. 2015
Interconnection rates International services
Vodafone to distribute
cash of which telecom
Egypt received EGP1.5bn
Sep. 2008 to 2017Litigation started June 2015 for
claims dated back from 2007 to
2017
TE to pay USD 47m
Orange financial Impact
Income statement Balance Sheet Cash flows
Revenues 49
Provisions 250
NPBT 201
Receivables 670
Impairments 648
Revenue 49
Orange payment 25
Income statement
Provisions EGP 1,020mn
NPBT EGP 1,020mn
Etisalat financial Impact
Receivables EGP 95mn
Provisions EGP 1,020mn
Balance Sheet Cash flows 2018
TE payment USD 48mn
TE avoids a USD 92m
court case
16
17This page is intentionally left blank
Our growth potential
Fixed-line marketOur investment in fiber is leading to substantial growth
2,799 2,560 2,408 2,244 2,506
1,237 1,576 2,204 3,096
4,411 592
873 861
1,277
1,536
2013 2014 2015 2016 2017
OtherFixed DataFixed Voice
Fiber access network capacity ( In 000’homes)
ADSL subscribers ( In 000’s)
182 403
2,175
3,597
7,088
11,072
2012 2013 2014 2015 2016 2017
Retail revenue growth driven by data( n EGP mn)
Voice and data household penetration
19
8%9%
21%
28%
2,631 3,029
3,791
4,439
5,197
1,667 1,978
2,809
3,382
4,070
964 1,051 982 1,057 1,127
2013 2014 2015 2016 2017
TE
Others
31.9%29.2% 28.7% 27.7%
30.0%
12.4%13.9%
16.6%19.0%
21.8%
2013 2014 2015 2016 2017
Fixed lineADSL
41,912 39,549 38,725 40,264 44,082
34,747 33,717 33,056 33,879 34,117
23,047 22,050 22,236 33,900 34,200
2,300
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Mobile market subscribers ( In 000’s)
Mobile marketOur growth story lies in the huge data potential
Mobile data market subscribers (In mn)
Mobile voice and data penetration (In mn)
Source: MCIT 20
352
1,600
2,300
Sep. 2017 Nov. 2017 Dec. 2017
TE's mobile subscribers since launch( In 000’s )
* Etisalat restated is Customer base higher starting FY 2016
116%109% 104% 106%
107%
21%29%
33% 35% 34%
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Voice penetration
14,500
21,770 26,300 28,650
32,790 3,900
4,050
3,820 3,280
3,260
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
USB
Mobile data
Source: MCIT
Our cable systemsCapitalizing on int’l traffic growth & our geographic location
Cable system revenue contributionCable revenue breakdown( In 000’s)
Cables crossing Egypt Our cable systems reach
Cables contribution to revenue
339
881
47 62
338
225
161
165 236
368
407
207
467
655
797
2013 2014 2015 2016 2017
Cable Projects Ancillary Services (O&M) Capacity Sales
8%
21
Agreements with domestic MNOsSecuring long-term revenue streams
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Transmission Services
International Services
Transmission Services
International Services
Transmission Services
12bn
3bn
1.5bn
1.5bn
International Services 3bn
2.37bn
Securing longer term agreements with domestic
mobile operators
Boosting our wholesale revenue stream by
monetizing our infrastructure investments
Our main goals
1
2
22
23This page is intentionally left blank
Financial analysis
25
Revenue by business unitRetail leading normalized growth
36%
18%
20%
18%
8%
Normalized
31%
15%
18%
26%
10%
Actual
FY 2017
Home DomesticEnterprise
International
Carriers Affairs
International Customers
& Networks
1,1401,418
1,654
4,228
5,662
Q4 2016 Q3 2017 Q4 2017 FY 2016 FY 2017
+45.1%
+16.6%
+33.9%
772579
944
2,389
2,791
Q4 2016 Q3 2017 Q4 2017 FY 2016 FY 2017
+22.3%
+63.0%
+16.9%
827 776 855
3,0043,304
Q4 2016 Q3 2017 Q4 2017 FY 2016 FY 2017
+3.3%
10.2%
+10.0%
1,129 1,283 1,073
3,203
4,868
Q4 2016 Q3 2017 Q4 2017 FY 2016 FY 2017
-4.9%
-16.3%
+52.0%
563 333
9161,126
1,942
Q4 2016 Q3 2017 Q4 2017 FY 2016 FY 2017
+62.8%
+174.8%
+72.4%
Home revenue growth in FY 17 supported by higher data services, customers grew 21% yoy & ARPU
19%.
Enterprise revenue growth in FY 17across all segments but mainly due to growth in managed access
services. On a quarterly basis, the jump in Q4 17 relates to the completion of infrastructure projects in
new urban communities.
Domestic wholesale continues to grow on increased demand for infrastructure leasing services.
ICA in FY 17 grew on the currency floatation, on a normalized basis it declined by 13% yoy. On a
quarterly basis, ICA declined 16% qoq, which is attributable to the continuation of traffic decline
relating to illegal bypass and the increase of the impact of OTT players.
ICN in the year grew by 72% on the currency floatation and the recognition of a cable project in Q4
2017. On a quarterly basis, in addition to the cable project, there was a hike in capacity sales.
Key FY 2017 highlights
Revenue (EGP mn)
EBITDA (EGP mn)
Net profit (LOSS)(EGP mn )
Operating Profit (LOSS)(EGP mn)
26
4,431 4,3895,442
13,950
18,567
Q4 2016 Q3 2017 Q4 2017 FY 2016 FY 2017
+22.8%
24.0%
+33.1%
-511
1,008
-396
2,670
3,150
Q4 2016 Q3 2017 Q4 2017 FY 2016 FY 2017
-22.4%
-139.3%
+18.0%
7581,145 1,261
3,801
5,184
Q4 2016 Q3 2017 Q4 2017 FY 2016 FY 2017
+66.5%
+10.1%
+36.4%
-187
680-558
1,9912,122
Q4 2016 Q3 2017 Q4 2017 FY 2016 FY 2017
+198.9%
-182.1%
+6.6%
27
• Investment income from VFE rose given that FY 16 included fx losses, but also
because VFE’s operating profit expanded by 28% in FY 17.
• Finance costs include fx gain (losses) and the adjustment of the present value related
to the license renewal. FY 16 included an fx gain of 888m vs. 136m in losses in FY 17.
• Interest expense rose as a result of the higher net debt level, Q4 17 witnessed the first
full impact of interest expense, which prior to that was capitalized.
• Other expenses include the impairments and provisions relating to the settlements
amounting to EGP 1.27bn in total.
• Depreciation rose as a result of our increased investments and amortization on the
back of the mobile license. Q4 is the first quarter with the full amortization impact.
• In spite of the rising costs EBITDA margin improved yoy by 67bps thanks to the
revenue growth. On a qoq basis EBITDA margin was pressured due to the one-off
bonus related to the mobile launch, the contribution to the pension fund and the
annual bonus, adjusting for the first two Q4 EBITDA would have reached 30%
boosted by high margin enterprise and cable revenue.
Income statement
Note: All financial figures reported are based on the consolidated financials under The Egyptian Accounting Standards
Reven
ue
EB
ITD
AO
ther
Op
ex
Net
pro
fit
• Revenue growth on across all business units, especially in home services mainly on
fixed data, enterprise solutions and ICN.
In EGP mn FY 2017 FY 2016 YoY Q4 2017 Q3 2017 Q4 2016 QoQ YoY
Revenue 18,567 13,950 33% 5,442 4,389 4,431 24% 23%
Home Services 5,662 4,228 34% 1,654 1,418 1,140 17% 45%Enterprise Solutions 2,791 2,389 17% 944 579 772 63% 22%Domestic Wholesale 3,304 3,004 10% 855 776 827 10% 3%International Carriers Affairs 4,868 3,203 52% 1,073 1,283 1,129 -16% -5%International Customers & Networks 1,942 1,126 72% 916 333 563 175% 63%
Total employee cost (5,061) (4,629) 9% (1,772) (1,121) (1,570) 58% 13%Call costs (4,152) (2,587) 60% (1,039) (1,082) (998) -4% 4%CoGS (excl. above expenses) (3,138) (2,229) 41% (972) (809) (821) 20% 18%S&D (excl. salaries, D&A) (533) (300) 77% (238) (133) (121) 79% 97%G&A (excl. salaries, D&A) (499) (403) 24% (159) (98) (163) 62% -3%
EBITDA 5,184 3,801 36% 1,261 1,145 758 10% 66%Margin 28% 27% 67 bps 23% 26% 17% (292 bps) 608 bps
Other (expense) / income (1,056) (275) 284% (1,066) (12) (397) 8637% 169%
Depreciation (1,743) (1,458) 20% (591) (407) (525) 45% 13%Amortization (264) (77) 243% (162) (46) (23) 253% 618%
Operating profit 2,122 1,991 7% (558) 680 (187) -182% 199%Margin 11% 14% (285 bps) -10% 16% -4% n/m (605 bps)
Income from investments 2,337 668 250% 561 602 (469) -7% n/m
Net finance (cost) / income (350) 665 -153% (183) (39) 190 374% -196%Net interest (expense) / income (296) 28 -1157% (222) (85) (0) 162% n/m
Tax (659) (680) -3% 8 (150) (45) n/m n/m
Net Profit 3,150 2,670 18% (396) 1,008 (511) n/m 22%Margin 17% 19% (217 bps) -7% 23% -12% n/m 424 bps
EPS 1.43 1.20 19% (0.34) 0.49 (0.39) n/m 22%
Exp
en
ses
• Employee expenses are higher on a qoq basis as a result of a one-off bonus related
to the mobile launch (c150m), the contribution to the employee pension fund
(c260m), in addition to the annual bonus.
• Call costs increased y-o-y on the currency floatation, Q4 witnessed a change in
trend where outgoing international call costs were significantly reduced.
• The increase in CoGs relates to higher cost of devices plus higher fuel & power
costs and the rise in S&D is a function of advertising costs.
No
n-o
pera
tio
nal
• Net profit grew 18% yoy to reach 3.15bn, excluding the one-offs net profit would
have reached EGP 4.8bn.
27
Historical 3 year income statement summary
Note: All financial figures reported are based on Consolidated financials under The Egyptian Accounting Standards.28
In EGP mn 2015 2016 2017Growth YoY
2016 2017
Revenue 12,184 13,950 18,567 14% 33%
Home services 3,568 4,228 5,662 18% 34%
Enterprise solutions 1,905 2,389 2,791 25% 17%
Domestic wholesale 2,927 3,004 3,304 3% 10%
International carriers affairs 2,977 3,203 4,868 8% 52%
International customers & networks 807 1,126 1,942 40% 72%
EBITDA 3,436 3,801 5,184 11% 36%
Margin 28% 27% 28% (95 bps) 67 bps
Other (income)/expenses (310) (275) (1,056) -11% 284%
Depreciation & amortization (1,589) (1,535) (2,007) -3% 31%
Operating profit 1,537 1,991 2,122 30% 7%
Margin 13% 14% 11% 166 bps (285 bps)
Income from investments 1,118 668 2,337 -40% 250%
Net finance (income) /cost 300 693 (646) 131% -193%
Tax 44 (680) (659) -1634% -3%
Net profit 2,997 2,670 3,150 -11% 18%
Margin 25% 19% 17% (546 bps) (217 bps)
EPS 1.40 1.20 1.43 -14% 19%
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. 29
FCFF(EGP mn)
In-service capex
(EGP mn)
2,083 1,796
1,597
4,338 4,649
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
1,682
(500)
147
(2,603)(2,456)
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
756
1,584
2,609
3,312
6,088
5,294
1,420 7%
13%
21%
62%
40%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Capex License Capex/sales
756
2,523 3,159
4,731
7,376
- - -
5,294
3,340
7%
21%26%
72%
58%
0%
10%
20%
30%
40%
50%
60%
70%
80%
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Capex License Capex/sales
Balance sheet highlights
30
FCFE(EGP mn)
Net debt(EGP mn)
Net debt/ EBITDA(EGP mn)
Breakdown of capex in-service
1,541
(591)
62
(97)
1,191
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
73%
10%
5%
11% 1%
FY 2017
Access Network Transmission International cable Customer care Others
-1.4x
-0.9x
-0.6x
0.6x
1.3x
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
5,762
3,810 2,587
1,180 638 -582 -466 -389
-3,342
-7,293
-5,179 -3,344 -2,197 2,161 6,656
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Net debt
Total debt Cash
104%
70%
106%
54%
83%
121%
99% 92%
182%
60%
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Consolidated
Standalone
1.25
1.43
0.53
1.40
1.20 1.08
1.01
0.61
0.41
1.65
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Consolidated
Standalone
1.5 1.7
0.8
1.8 1.6
1.3 1.3
0.9 0.7
2.0
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Consolidated
Standalone
Dividend analysisWe 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 financials under The Egyptian Accounting Standards. 31
Payout ratio(%)
Dividend distribution on standalone financials (based on regulations)(In EGP )
1.01
0.61
0.41
1.65
1.00
0.56
0.75
1.00
99%92%
182%
60%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200 %
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
FY 2013 FY 2014 FY 2015 FY 2016
EPS DPS Payout ratio
Management proposed the distribution of EGP 1 per
share for 2017
32
Remodeling our CAPEX spending
Access
&
Core
2016 2017
US$ 469 million US$ 415 million 5%
- MSANs Expansion: 2,916
- IP Core Upgrade: 16 Terabyte
- IPT Upgrade : 1.2 Terabyte
- RAN Deployment: 927 nodes
- Mobile Core & VAS: 5 million customers
US$ 271 million US$ 303 million
- MSANs Expansion: 4,512
- IP Core Upgrade: 9.6 Terabyte
- IPT Upgrade: 900 Gigabyte
Transmission
Network Upgrade the Network Capacity by 10 Terabyte
US$ 97 million US$ 42 million
Upgrade the Network Capacity by 16 Terabyte
International
Network SMW4 Upgrade 5, AAE 1, IRU capacitiesMesh Network, AAE1, EIG Upgrade 3, TE north,
SMW5, IRU capacities
US$ 37 million` US$ 19 million
IT & Customer
Care- KAM Solution
- Outlets Renovation (37 outlets)
- Mobile Pre Paid & Post Paid Services (BSS)
- Outlets Renovation (150 outlets)
- Fixed Billing Upgrade
- Enterprise CRM for Data services
- Call Center & IVR Expansion
US$ 55 million US$ 45 million
32
Our performance in contextDelivering on guidance, normalized double digit growth
Revenue Growth y/y
EBITDA margin (%)
CAPEX / sales (%)
FY 2017
actual
FY 2017
guidance
33% High 20s
28%High 20s to early
30s
In-service: 40%
Cash: 32%40%
FY 2017
normalized
%13
27%
In service: 26%
Cash: 22%
2018
guidance
high single to
low double digit
Mid to high 20s
30-35%
33
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