Slide 1: Corporate presentation
Corporate presentation telecomegypt ark 9 f f rf 6 | = oe ’ LN = ° . / = o§ / \ 4 ° / “ Ate ‘ ° fis i p Vlitiieg / \ a XV . PEL;
Slide 2: Contents
Contents Company snapshot Macro overview Redefining our strategy — Our growth potential Financial highlights (2021-2023) FY 2023 highlights... nnnnnnnnnnnnnnnnnnnnnnnntnnnnnnnnnn
Slide 3: 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 4: Shareholder structure
• • • • • South Africa Retail, 4% 3.9% ROW Europe 2.5% GCC 4.3% Free float, 7.7% 30% USA Egypt Institutional, 26% 58.2% Government, 23.4% 70%
Slide 5: Macro overview
Macro overview
Slide 6: Population demographics
6% 3% 0-9 22% 8% 10-19 20-29 11% 30-39 40-49 19% 50-59 14% 60-69 70+ 17% Illiterate 12% 3% 26% Literate ↓ Primary Secondary 29% 11% High school University degree 19%
Slide 7: Macro indicators
Macro indicators Currency devaluation creates challenging environment Real GDP growth (%) * Average USD to EGP rate 30.1 31.031.0 31.0 23, 16.2 15.8 16.016.015.8 15.8 15.7 15.8 15.8 162 Gs SP PP PD DD PD or We DP PP P 8 Oh Ho Hw Gg WH We * 2020 and 2021 growth forecasts were 5.9% and 6%, respectivel
Slide 8: Redefining our strategy
Redefining our strategy
Slide 9: Our leadership team
Our leadership team High caliber from the mobile & fixed industries with local & int'l experience bo & Mohamed Nasr Eldin Mohamed Shamroukh Mohamed Abo-Taleb Seif Allah Mounib Managing Director & Senior Vice President Vice President Vice President Chief Executive Officer Chief Financial Officer Chie
Slide 10: Telecom Egypt WE-DRIVE Strategy (2024-2026)
Telecom Egypt WE-DRIVE Strategy (2024-2026) A multi-core strategy Core Layer Core Business of Teleco Main Revenue Streams Core Functions Efficiency Layer RIVE — Main Efficiency Enablers for Telecom Egypt Focus Areas to E tability Supporting Initiatives Growth Layer h Drivers Lucra ortunities to Grow
Slide 11: Digital customer relationships and strategic pillars
© igital Customer elationships nnovation & Partnerships Core Business alue Creation -business
Slide 12: Strategic objectives and initiatives
© Maximizing Shareholder Value Achieve Financial Excellence Converged Products and Solutions Network Expansion and Evolution Operational Efficiency & Automation Improve Value Creation & ROI Seamless Customer Journey & Excellence Foster Corporate Agility Focus on Customer Loyalty & Retention Drive En
Slide 13: Our growth potential
Our growth potential
Slide 14: FY 2020 FY 2023 FY 2022
• • • • • • 31,507 31,507 27,683 • 18,313 FY 2020 FY 2023 FY 2022 FY 2023
Slide 15: Data traffic growth
30% 25% 20% 15% 10% 5% 0% -5% -10% YoY MoM Fixed data traffic Mobile data traffic -15%
Slide 16: Mobile commercial roadmap
Mobile commercial roadmap Data Plans Agda3 Kart Indigo Mobile NITRO Data Plans’ Control Iridium Oct-18 in Addition to 1GB ForEGP5 | Soe Enterprise Control Tazbeet Indigo ADSL & Plus Jan-21 Feb-21 July-21 Feb-22 Sept-23 ‘akafol and Karama, Agda3 Sha7na_New Control Kix & Tazbeet 16
Slide 17: WE SPACE
WE SPACE New shift in our fixed broadband offering Comparison of the entry level bundle we €. suPER meGA: yLTRA ag Launch date April 2018 July 2019 Oct 2020 f° Speed Urt©5 Mbps EEE «UP 30 Mbps EEE» 200 Mbps <B> . Sy Price EGP 110 [> EGP120 E> EGP 1000 All Quota 100 GB ==> 40GB =) 1TB “This bundle fe
Slide 18: FY 2019 FY 2020 FY 2021
14,0 00 10,0 00 39.0 190 .0 9,00 0 12,0 00 8,00 0 37.0 170 .0 10,0 00 7,00 0 35.0 150 .0 6,00 0 8,00 0 5,00 0 33.0 130 .0 6,00 0 4,00 0 31.0 110 .0 3,00 0 4,00 0 2,00 0 29.0 90.0 2,00 0 1,00 0 0 27.0 0 70.0 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
Slide 19: FY 2022 FY 2023 FY 2019
32,230 32,588 31,293 30,800 27,715 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
Slide 20: Mobile market
Mobile market An ever-expanding customer base Mobile market voice and data penetration —eVoice penetration —e—Data penetration 116% 100% 101% 105% 11% 0 e o— —o— * 75% 64% 68% _,' 56% ° —e— a FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Source: MCIT & operators disclosures Mobile data market subscribers
Slide 21: FY 2020 FY 2023 FY 2022
• • • • • • • • 25,172 25,172 16,590 13,600 FY 2020 FY 2023 FY 2022 FY 2023
Slide 22: Submarine cable timeline
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2028 2029 2031
Slide 23: Submarine cable network map
UK Germany Belgium France Italy Portugal Greece Turkey Japan Cyprus Syria Korea Tunisia Lebanon Morocco Jordan Iraq Iran Algeria Pakistan Libya Egypt Qatar Bangladesh Myanmar China Taiwan U.A.E India Saudi Arabia Oman Eritrea Yemen Philippine Sudan Djibouti Vietnam Sri Lanka Thailand Ethiopia Somali
Slide 24: International Points of Presence
International Points of Presence c Singapore Italy France cJordan Call Center c Services Morocco Mauritius
Slide 25: International services
International services Healthy performance across the majority of our business lines Int'l Carriers revenue breakdown in EGP (lame) g International Direct Dialing (IDD) im Transit FY 2020 FY 2021 FY 2022 Int'l Carriers revenue breakdown in USD* ome) m International Direct Dialing... im Transit FY 20
Slide 26: 50,00 % 48,00 120.0 45,00 % 47,50 40,00 110.0 0 290 % 47,00 0
50,00 0 390 % 48,00 0 120.0 0 45,00 0 340 % 47,50 0 40,00 0 110.0 0 290 % 47,00 0 35,00 0 100.0 0 240 % 46,50 0 30,00 0 90.00 46,00 0 25,00 0 190 % 45,50 0 20,00 0 80.00 140 % 45,00 0 15,00 0 70.00 90% 44,50 0 10,00 0 60.00 40% 44,00 0 5,000 43,50 0 50.00 - -10% 12,00 0 8,000 7,000 10,00 0 6,000 8,0
Slide 27: FY 2020 FY2023 FY 2022
* 4,995 4,995 2,682 2,206 FY 2020 FY2023 FY 2022 FY 2023
Slide 28: Main events in 2023
Main events in 2023 Read More Read More Read More Read More Read More Read More Read More
Slide 29: Main events in 2024 to date
Main events in 2024 to date Read More Read More Read More Read More
Slide 30: Financial highlights (2021-2023)
Financial highlights (2021-2023)
Slide 31: Financial highlights
Financial highlights Excellent operational performance in a volatile market Revenue EBITDA (le EGP me) (ie EGP mn) 14,193 FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023 Operating profit Net profit (EGP mn) (EGP mn) +41.7% +36.2% 427.9% +24.9% -— eS, = 12,266 11,466 9,59 oo 8,417 FY 2021 FY 2022 FY
Slide 32: Revenue by business unit
Revenue by business unit Data the driving force behind retail revenue Home & Consumer Enterprise Domestic International Carriers International Customers & Affairs Networks +38.3% +36.6% 438.8% 475.0% 131.3% 427.9% —_ 8% [ wa0m 415.3% - 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021
Slide 33: Income statement 2021-2023
Growth YoY In EGP mn 2021 2022 2023 2022 2023 Revenue Home & Consumer Enterprise Domestic Wholesale International Carriers International Customers & Networks Total employee cost Call costs COGS (excl. above expenses) S&D (excl. salaries, D&A) G&A (excl. salaries, D&A) EBITDA Margin Other (income)/ex
Slide 34: 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 35: Capex
25,00 0 200 % 180 % 20,00 0 160 % 140 % 15,00 0 120 % 100 % 10,00 0 80% 60% 5,000 40% 20% - 0% Capex License Capex/sales 25,00 0 200 % 180 % 20,00 0 160 % 140 % 15,00 0 120 % 100 % 10,00 0 80% 35% 42% 60% 5,000 37% 30% 31% 40% 20% - 0%
Slide 36: 7,236 (1,583) (1,965) (2,117) (3,563) 51% -12% -16% -18% -27%
7,236 (1,583) (1,965) (2,117) (3,563) 51% -12% -16% -18% -27%
Slide 37: EPS and DPS
Consolidate 5.70 Consolidated d 6.72 4.61 4.34 5.38 3.83 4.93 3.66 4.07 4.30 3.19 3.74 2.79 3.18 2.31 2.84 2.10 2.58 1.27 0.87 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 EPS Consolidate DPS d 4.50 3.83 86% 4.00 3.66 3.50 3.19 3.00 2.79 2.50 47% 1.50 32% 33% 2.00
Slide 38: FY 2023 highlights
FY 2023 highlights
Slide 39: FY 2023 results highlights
FY 2023 results highlights Positive momentum maintained Revenue (EGP bn) 56.7bn 28% YoY Voice Data Fixed 12.5 9.5 +8% YoY +9% YoY Mobile 1 2.4 0% YoY EBITDA (EGP bn) 22./7b6n 30% YoY EBITDA margin of 40%, +62 bps YoY Net profit (EGP bn) 11.5bn 25% YoY Net profit margin of 20%, -51bps YoY FY 2023: St
Slide 40: Revenue bridge FY22 to FY23
+28% 4,060 2,751 496 1,772 3,327 56,679 44,273 FY 22 Total Revenues Home & Consumer Enterprise Solutions Domestic Wholesale ICA IC&N FY 23 Total Revenues
Slide 41: Income statement (FY 2023)
Income statement (FY 2023) EGP mn FY 2023 FY 2022 Q4 202303202304 2022 + Top line increased 28% YoY, driven by a 14% increase in retail and a 52% hike in Revenue 56,679 44,273 14,721 13,823 11,999 gs wholesale. Home 25,086 21,759 6,550 6414 5,766 = [+ The increase in retail revenue was mainly driven
Slide 42: Analyst consensus versus actual results
Revenue EBITDA EBITDA margin Net profit In EGP million Analyst 1 14,589 6,268 43.0% 3,304 Analyst 2 13,648 4,708 34.5% 2,286 Analyst 3 14,170 5,655 39.9% 2,434 Analyst 4 13,419 5,157 38.4% 2,242 Average of estimates 13,957 5,447 39% 2,567 Median 13,909 5,406 39.0% 2,360 High 14,589 6,268 43.0% 3,304
Slide 43: Our performance in context
Our performance in context FY 2023 FY 2023 FY 2024 actual guidance budget Early double- Revenue growth YoY digit Mid-to-high 30s EBITDA margin (%) In-service: Capex/sales (%) Mid-20s FCF/EBITDA (%) Farly double- igi “Including the spectrum and 2G license payments, FCF/EBITDA would be -16%
Slide 44: Thank You
Thank You Investor relations team Check our website investor.relations@te.eg ir.te.eg