Slide 1: Results presentation Q3 2023
Results presentation telecomegypt Q3 2023
Slide 2: Disclaimer
Disclaimer This document has been prepared by Telecom Egypt (the “Company” or “TE") 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
Slide 3: 9M 2023 results highlights
9M 2023 results highlights Three consecutive quarters of strong financial results 9M 2023: Positive results as we head towards year-end Revenue (EGP bn) Voice Data Y Total revenue reached EGP 42.0bn, increasing 30% . 1 ? 4 9 3 YoY, mainly driven by the wholesale increment of EGP 4 O Fixed e e 6.56n
Slide 4: Q3 2023 results highlights
Q3 2023 results highlights Top-line continues to gain traction YoY Revenue (EGP bn) (EGP bn) 5.6b6n 7% YoY / -3% QoO. EBITDA margin of 41%, -376bps YoY, -34bps QoQ 7 Voice Data 1 3 8b Fixed 12.4 9.3 e Nn +9% YoY +8% YoY +16% YoY / -2% Q0O Mobile 1 2.5 +6% YoY EBITDA Net profit (EGP bn) 2.5b6n 3% YoY
Slide 5: Analyst consensus vs Telecom Egypt results
Revenue EBITDA EBITDA margin Net profit In EGP millions Analyst 1 13,780 5,626 40.8% 2,684 Analyst 2 13,695 5,945 43.4% 3,157 Analyst 3 13,738 5,770 42.0% 2,800 Analyst 4 13,745 5,790 42.1% 2,878 Analyst 5 13,700 5,337 39.0% 2,402 Analyst 6 13,786 5,646 41.0% 2,379 Analyst 7 13,345 5,594 41.9% 2,498
Slide 6: Main events
Main events Read More Read More Read More Read More Read More
Slide 7: Financial highlights
Financial highlights Revenue EBITDA (€GPmn) (EGP rm) +16.4% +30.0% +6.6% +31.9% -2.5% -3.3% nd 41,958 nd 17,588 32,274 13,339 Q3 2022 Q2 2023 Q3 2023 9M 2022 9M 2023 Q3 2022 Q2 2023 Q3 2023 9M 2022 9M 2023 Operating profit Net profit (EGP mo) (EGP mn) 8.4% 423.2% +2.7% +48.3% r r f 5.6% 14.9% ‘ 9,14
Slide 8: Customer base and ARPU
Customer base and ARPU Fixed line Fixed broadband (noo) noo) 12,396 9,318 9,085 11,816 8,907 11,727 : 11,587 8,766 11,412 8,610 03 2022 04 2022 21 2023 02 2023 03 2023 03 2022 04 2022 21 2023 02 2023 03 2023 Mobile ARPU ¢n0005) nese) 12,557 12,489 12,444 12,538 _-Fixed line ARPU ——-—o--Fixed data AR
Slide 9: 9M 2022 to 9M 2023 total revenue bridge
+30% 2,729 2,244 1,486 682 2,544 Cable Projects: +1,026 41,958 Voice Voice Infrastructure & Ancillary Services: 32,274 +39 International + 178 Transmission +532 Direct Dialing +1,422 Data +2034 Data Capacity + 90 + 2,366 Int’l voice Sales:+783 Transit services Others +209 +65 International +552 Cust
Slide 10: Revenue by business unit
Revenue by business unit Operational resilience seen across the board Home & Enterprise Domestic International International Customers & Consumer Pp Carriers Affairs Networks +15.0% +15.9% 412.5% +17.3% 48.1% 431.9% 472.4% +67.0% 41.3% 462.9% +3.4% l | #3. I [ -10.5% l | -3.5% l | “12.9% I Foe 8.55
Slide 11: Income statement (Q3)
In EGP mn • Revenue Revenue Home Enterprise Domestic ICA IC&N • Expenses Employee cost Call costs CoGS* S&D* • EBITDA G&A* EBITDA Margin • Other OPEX Other (expense) / income Depreciation Amortization • (Pro)\ Reversal of ECL provision Operating profit • Margin Non-operational Income from investment
Slide 12: Income statement (9M)
In EGP mn Revenue • Revenue Home Enterprise Domestic • ICA IC&N • Expenses Employee cost Call costs CoGS* S&D* G&A* • EBITDA EBITDA Margin • Other OPEX Other (expense) / income • Depreciation Amortization (Pro)\ Reversal of ECL provision Operating profit • Non-operational Margin Income from investme
Slide 13: Q3 operating profit bridge
- 761 1,950 502 340 10 649 8 3,542 3,243 Q3 22 Revenue COGS Employee SG&A Provisions \ Depr & Amort. Other Q3 23 Operating Profit Cost ECL Reversal Income/Expense Operating Profit 13
Slide 14: 9M operating profit bridge
23% 3,060 1,706 9,684 670 302 1,907 40 10,611 8,610 9M 22 Revenue COGS Employee SG&A Provisions \ Depr & Amort. Other 9M 23 Operating Profit Cost ECL Reversal Income/Expense Operating Profit 14
Slide 15: 1,20 30.00 10.00 1,00 -10.00 -30.00 -50.00 0 -70.00
1,20 0 30.00 10.00 1,00 0 800 -10.00 600 400 -30.00 200 -50.00 0 -70.00
Slide 16: Capex, license and capex/sales
14,00 0 200 % 180 % 12,00 0 160 % 10,00 0 140 % 120 % 8,000 100 % 6,000 80% 60% 4,000 40% 2,000 20% - 0% 18,00 0 Capex License Capex/sales 200 % 180 % 16,00 0 160 % 14,00 0 140 % 12,00 0 120 % 10,00 0 100 % 8,000 80% 6,000 37% 60% 4,000 34% 32% 32% 29% 40% 2,000 20% - 0%
Slide 17: Cash flow bridge
6,029 349 (878) (258) (2,345)
Slide 18: Our performance in context
Our performance in context Revenue growth YoY EBITDA margin (%) CapEx/sales (%) FCFF/EBITDA (%) 9M 2023 actual FY 2023 budget Early double digit Mid-to-high 30s In-service: Early 20s Mid-20s 18
Slide 19: Thank You
Thank You Investor relations team Check our website investor.relations@te.eg ir.te.eg