Global Telecom Holding S.a.e. · EGX:GTHE
Global Telecom Holding S.a.e — Investor Presentation (June 2016)
32 slides from Global Telecom Holding S.a.e's investor presentation, June 2016
Slide 1: Investor Presentation June 2016
Investor Presentation June 2016
Slide 2: Disclaimer
Investor Presentation © Global Telecom Holding S.A.E. 2016 Disclaimer This presentation is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy shares in Global Telecom Holding (the "Company"). Further, it does not constitute a recommendation
Slide 3: GTH – a leading mobile operator in attractive emerging markets
Investor Presentation © Global Telecom Holding S.A.E. 2016 GTH – a leading mobile operator in attractive emerging markets Revenue 2015 409 million population coverage1 Pakistan Bangladesh Population 196m 86.4 million mobile customers (excluding Zimbabwe)2 Mobile Penetration 77% (real 20% Algeria 59%
Slide 4: 1Q16 Financial highlights
Investor Presentation © Global Telecom Holding S.A.E. 2016 1Q16 Financial highlights • Service revenue organic increase of 6% Service revenue Mobile customers YoY due to: (USD million) (million) ► Strong performance in Pakistan and Bangladesh 687 86.4 ► Algeria revenue was stable organically • EBITD
Slide 5: 1Q16 Income Statement
Investor Presentation © Global Telecom Holding S.A.E. 2016 1Q16 Income Statement USD millions 1Q16 1Q15 Change Total revenue 707.1 718.8 (2%) • Organic increase of 6% YoY EBITDA 339.1 321.1 6% • Organic increase of 15% YoY supported by revenue and performance transformation Depreciation and amortiza
Slide 6: Debt by entity
Investor Presentation © Global Telecom Holding S.A.E. 2016 Debt by entity As at 31 March 2016 Net debt / Gross debt / Weighted average underlying1 LTM EBITDA underlying1 LTM EBITDA Interest rate 1.4x - 0.1x QoQ 1.9x stable QoQ 9.9% - 0.1x YoY - 0.4x YoY Outstanding debt (USD million) Type of debt En
Slide 7: USD 1.2 billion GTH bonds issued successfully in April 2016
Investor Presentation © Global Telecom Holding S.A.E. 2016 USD 1.2 billion GTH bonds issued successfully in April 2016 Key terms Amount issued: USD 1.2 billion in two tranches Issuer GTH Finance B.V. (wholly owned subsidiary of Global Telecom Holding S.A.E.) Guarantor VimpelCom Holdings B.V. (Guaran
Slide 8: Debt by entity, pro-forma for GTH bond issuance
Investor Presentation © Global Telecom Holding S.A.E. 2016 Debt by entity, pro-forma for GTH bond issuance As at 31 March 2016, pro-forma Net debt / Gross debt / Weighted average underlying1 LTM EBITDA underlying1 LTM EBITDA Interest rate 1.4x 1.9x 8.6% - 1.3 p.p. Outstanding debt (USD million) Type
Slide 9: Enhanced maturity profile
Investor Presentation © Global Telecom Holding S.A.E. 2016 Enhanced maturity profile As at 31 March 2016, pro-forma for GTH bond issuance GTH (pro-forma) Djezzy Mobilink 1,427 Banglalink GTH 700 471 512 318 227 203 4 2016 2017 2018 2019 2020 2021 2022 2023 9
Slide 10: Significant upside in terms of mobile penetration & data usage
Investor Presentation © Global Telecom Holding S.A.E. 2016 Significant upside in terms of mobile penetration & data usage Mobile Penetration1 (%) Mobile Data Penetration2 (%) Data Usage2 (MB / User) Western Europe Western Europe Western Europe Avg: 131% Avg: 77% Avg: 2,501 MB/User 416 116% 46% 341 4
Slide 11: Leading mobile operator with diversified footprint in attractive emerging markets
Investor Presentation © Global Telecom Holding S.A.E. 2016 Leading mobile operator with diversified footprint in attractive emerging markets Algeria Pakistan Bangladesh Market share1 Market share2 Market share2 4.2% 8.7% Mobilink 6.9% 27.0% 29.1% Grameenphone Djezzy 19.3% Telenor 43.0% 41.8% Banglal
Slide 12: GTH focuses on the following six strategic priorities
Investor Presentation © Global Telecom Holding S.A.E. 2015 GTH focuses on the following six strategic priorities 6 1 Structural New revenue improvements streams: • Algeria turnaround • Data growth • Optimize capital structure • B2B focus Expected sustainable Digital World class increase in leadershi
Slide 13: Algeria: transformation program ongoing
Investor Presentation © Global Telecom Holding S.A.E. 2016 Algeria: transformation program ongoing DZD BILLION, UNLESS STATED OTHERWISE Mobile service revenue Mobile customers (million) • Stable service revenue YoY, positively -0.2% YoY -2.5% YoY affected by: ► Favorable change in interconnect rates
Slide 14: Pakistan: double digit growth in revenue and EBITDA
Investor Presentation © Global Telecom Holding S.A.E. 2016 Pakistan: double digit growth in revenue and EBITDA PKR BILLION, UNLESS STATED OTHERWISE Mobile service revenue Mobile customers • Double digit revenue growth supported by all (million) +12.5% YoY -0.2% YoY revenue streams, gaining market sh
Slide 15: Bangladesh: continued strong performance
Investor Presentation © Global Telecom Holding S.A.E. 2016 Bangladesh: continued strong performance BDT BILLION, UNLESS STATED OTHERWISE Mobile service revenue Mobile customers (million) • Maintained growth momentum in the face of +6.4% YoY -0.7% YoY intense competition • Ongoing SIM verification pr
Slide 16: Strengthening our leadership position in Pakistan
Strengthening our leadership position in Pakistan
Slide 17: Disclaimer
Investor Presentation © Global Telecom Holding S.A.E. 2016 Disclaimer This presentation contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts, and include statemen
Slide 18: In-market consolidation in Pakistan – executing on strategy
Investor Presentation © Global Telecom Holding S.A.E. 2016 In-market consolidation in Pakistan – executing on strategy 6 1 Structural New revenue improvements streams World class operations Delivering on 5 strategy 2 Digital leadership Portfolio rationalization Performance and consolidation transfor
Slide 19: Mobilink and Warid to merge, strengthening leadership position in Pakistan
Investor Presentation © Global Telecom Holding S.A.E. 2016 Mobilink and Warid to merge, strengthening leadership position in Pakistan Strengthening leadership position in Pakistan Investment and innovation • Largest combined footprint and customer base of 45 million • Enlarged and improved mobile ne
Slide 20: Transaction rationale
Investor Presentation © Global Telecom Holding S.A.E. 2016 Transaction rationale A leading operator in Pakistan telecom market + - Superior Best-in-class New revenue Cost customer mobile network opportunities synergies experience 20
Slide 21: A leading operator in the Pakistan telecoms market
Investor Presentation © Global Telecom Holding S.A.E. 2016 A leading operator in the Pakistan telecoms market A leading mobile operator Mobilink holds the number 1 market position (Mobile customer market share1) (Market share1 based on customers) 29% 38% 27% Market 27% 19% position 19% 16% 16% 9% Mo
Slide 22: Superior customer experience
Investor Presentation © Global Telecom Holding S.A.E. 2016 Superior customer experience • Best coverage of over 80% population by 2G • High quality of customer services • Simple and transparent pricing • Enhanced service delivery through digital platform • To become #1 in NPS ranking, leveraging fro
Slide 23: New revenue opportunities
Investor Presentation © Global Telecom Holding S.A.E. 2016 New revenue opportunities + Digital & MFS leader: Owning and winning in the High Value and the • Mobilink the fastest growing MFS player in B2B segments: the market ► Mobilink MFS revenue 2.7% of total • Leading position in high-value ► 2.5
Slide 24: Best-in-class mobile network
Investor Presentation © Global Telecom Holding S.A.E. 2016 Best-in-class mobile network • Our plan is to enhance network capacity and quality of service • Targeted network investments in quality and coverage • Network consolidation through migration of customers and integration of network elements •
Slide 25: Identified cost synergies - total run-rate of USD 115 mln
Investor Presentation © Global Telecom Holding S.A.E. 2016 Identified cost synergies - total run-rate of USD 115 mln1 - Market facing • Integrated customer service & customer • Efficient channel and distribution model Synergies run rate operations (USD million) 115 • Site decommissioning Capex c. 25
Slide 26: Enhanced profitability and cash generation
Investor Presentation © Global Telecom Holding S.A.E. 2016 Enhanced profitability and cash generation An operator with USD 1.4bn revenue EBITDA margin of 42% (USD mln, LTM Sept 2015) (USD mln, LTM Sept 2015 and % margin) 357 1,366 7pp 42% 35% 1,009 Revenue 569 483 and EBITDA Mobilink Warid pro forma
Slide 27: Key transaction terms
Investor Presentation © Global Telecom Holding S.A.E. 2016 Key transaction terms • VIP/GTH, though PMCL Mobilink, acquires 100% of the shares of Warid Telecom in exchange for the Dhabi Group shareholders receiving approximately 15% of the shares of PMCL Mobilink • No cash contributions expected from
Slide 28: Transaction structure
Investor Presentation © Global Telecom Holding S.A.E. 2016 Transaction structure Step 1 – share acquisition Step 2 – legal merger VimpelCom VimpelCom 51.9% 51.9% GTH GTH ~85% ~85% ~15% ~15% PMCL Dhabi Group PMCL Dhabi Group Mobilink shareholders Mobilink shareholders 100% Warid Telecom Closing 6 mon
Slide 29: Summary
Investor Presentation © Global Telecom Holding S.A.E. 2016 Summary In-market optimization Algeria transaction Italy JV Pakistan transaction September October January March August November 2014 2014 2015 2015 2015 2015 WIND Canada disposal Telecel Globe Limited CAR and Zimbabwe disposal Burundi dispo
Slide 30: Appendix
Appendix @=2 Global Telecom —_—
Slide 31: GTH accounting implications – Mobilink and Warid transaction
Investor Presentation © Global Telecom Holding S.A.E. 2016 GTH accounting implications – Mobilink and Warid transaction Upon closing of the share acquisition • The acquisition of Warid will be accounted for as a business combination under IFRS • The fair value of Warid’s assets and liabilities will
Slide 32: Contacts
Investor Presentation © Global Telecom Holding S.A.E. 2016 Contacts For your inquiries, please contact: Ola Tayel Investor Relations Manager E: IR@gtelecom.com T: +202 2461 5120 F: +202 2461 5055/54 W: www.gtelecom.com 32
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