Telecom Egypt · EGX:ETEL
Telecom Egypt — Investor Presentation (March 2025)
47 slides from Telecom Egypt's investor presentation, March 2025
Slide 1: Corporate Presentation
Corporate Presentation telecomegypt March 2025
Slide 2: Disclaimer
Disclaimer This document has been prepared by Telecom Egypt (hereinafter referred to as the “Company” or “TE”) exclusively for informational purposes. The content of this document has not been independently verified. It contains forward-looking statements concerning the Company's future business, fi
Slide 3: Contents
Contents Company Snapshot Macro Overview Telecom Egypt Overview Network Leadership Retail Segment Wholesale Segment Investment in Vodafone Egypt ~~ FY 2024 Highlights Historical Performance
Slide 4: Company Snapshot
Company Snapshot Heritage Transformed Telecom Egypt's Incorporation * Founded in1854 with the first telegraph line in Egypt * Incorporated in 1998, replacing the former Arab Republic of Egypt National Telecommunication Organization (ARENTO) + Listed in 2005 on Egypt and London Stock Exchanges * Acqu
Slide 5: Macro Overview
Macro Overview
Slide 6: Population demographics by age
3% 6% 21% 70+ 60-69 8% 50-59 40-49 12% 30-39 20-29 20% 14% 10-19 0-9 16%
Slide 7: Macroeconomic Indicators (2/2)
Macroeconomic Indicators (2/2) Real GDP Growth (%) nN Bs Source: IMF CBE Discount Rate 27.8% *Latestrate to date Source: Central Bank of Egypt Average USD to EGP Rate 47.6 48.6 49.6 35.4 31.0 31.0 31.0 30.1 Source: Central Bank of Egypt Core Inflation (YoY) 39.5% 41.0% 39.7% 34.2% 33.7% 23.2% Source
Slide 8: Telecom Egypt Overview
Telecom Egypt Overview
Slide 9: A Robust Business Led by a Team of the Highest Caliber
A Robust Business Led by a Team of the Highest Caliber Wael Hanafy fice President Chief Financial Officer
Slide 10: Our Strategy - WE-DRIVE
Our Strategy - WE-DRIVE Core Layer Core Business: Ignite Value Creation Maximize Shareholder Value Achieve Financial Excellence Converged Products and Solutions Network Expansion and Evolution Operational Efficiency & Automation Improve Value Creation & ROI Efficiency Layer Gearing up Customer Relat
Slide 11: Our Business Units
Our Business Units Retail Wholesale Consumer Services Domestic Wholesale Our consumer portfolio offers a range of services, including fixed voice and broadband, mobile voice and data, and other value-added services that provide customers with convenience, savings and integrated support. Our domestic
Slide 12: Shareholder Structure
Shareholder Structure Highly Diversified Solid Institutional Shareholder Base Market Cap of USD 1.2bn | ETEL EY/ ETEL.CA (as of 27 February 2025) Main Shareholders & Free-float Free-float Composition Free-float — by Region/Country The State 70% 12
Slide 13: Network Leadership
Network Leadership
Slide 14: Telecom Egypt, the First 5G Network Provider in the Country
5G (1/2) Telecom Egypt, the First 5G Network Provider in the Country : | = , —% The First 5G Service Provider
Slide 15: Empowering New User Experiences and Future-proofing Businesses
5G (2/2) Empowering New User Experiences and Future-proofing Businesses Speed Latency Network Efficiency Big Data Technology Internet of Things 5G offers significantly One of the key benefits faster upload and sei 5G optimizes network 5G network is the main 5G drives innovation in 5G enables seamles
Slide 16: Our Cable Network
Our Cable Network Expanding our Reach IC&N Positioning Telecom Egypt as the regional Asian and East African gateway to Europe for traffic originating from countries in Asia, the Middle-East and Africa [ 15 | [ Submarine Cables in Service | [ 7+ | [ Planned Submarine Cables | 10 __| | Cable Landing S
Slide 17: International cables revenue FY2021-FY2024
33,875 • 32,588 32,230 • 31,293 FY 2021 FY 2022 FY2023 FY 2024 • • • • •
Slide 18: Retail Segment
Retail Segment
Slide 19: Retail Segment
Retail Segment Strong Growth Momentum Driven by Data Services Voice [EF ; + Growing Mobile customer base Growing Fixed Voice customer base driven by Fixed Broadband connectivity 13% Re cor 5,018} Fy 2021 FY 2024 Other + Managed Services + Complimentary Access Services - Governmental Entities - Priva
Slide 20: Retail customer and usage trends
12,0 00 14,0 00 270 .0 10,0 00 47.0 12,0 00 8,00 0 220 .0 10,0 00 42.0 8,00 0 6,00 0 170 .0 37.0 6,00 0 4,00 0 4,00 0 120 .0 32.0 2,00 0 2,00 0 0 27.0 0 70.0
Slide 21: WE SPACE
WE SPACE New Shift in our Fixed Broadband Offering Bundle Comparisons HHH] Date Apr 2018 Oct 2020 Jan 2024 me, 7 Speed 5-100 Mbps Dec 2024 30-200 Mbps 30-200 Mbps 30-200 Mbps <>) Sa Price 110-300 EGP 120-1000 EGP 160-1350 EGP 210-1760 EGP “all Quota 100-500 GB 140-1000 GB 140-1000 GB 140-1000 GB 21
Slide 22: Retail operating metrics
3,190 2,470 2,070 2,420 76,680 84,240 63,440 69,080
Slide 23: Wholesale Segment
Wholesale Segment
Slide 24: Wholesale Segment
Wholesale Segment Domestic eres Egypt's telecom infrastructure provider ‘ 3-10 year agreements with MNOs Indirect play on Data market growth 19% Revenue CAGR FY 2021 FY 2024 ICA (International Carrier Affairs ) e- The primary provider of international calls to MNOs 4-5 year agreements with MNOs 46%
Slide 25: Cable systems timeline 2009-2032
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2030 2031 2032 *
Slide 26: Wholesale figures
1,145 457 1,891 307 1,299 290 557 463 26 18 16 16 15
Slide 27: Investment in Vodafone Egypt
Investment in Vodafone Egypt
Slide 28: Vodafone Egypt performance
80,00 0 390 % 12,00 0 18,00 0 52,00 0 120.0 0 16,00 0 70,00 0 340 % 110.0 0 10,00 0 50,00 0 14,00 0 60,00 0 290 % 100.0 0 8,000 12,00 0 48,00 0 50,00 0 240 % 90.00 10,00 0 40,00 0 190 % 6,000 46,00 0 80.00 8,000 30,00 0 140 % 47% 70.00 4,000 44% 6,000 44,00 0 60.00 20,00 0 48% 43% 90% 4,000 42,00 0
Slide 29: FY 2024 Highlights
FY 2024 Highlights
Slide 30: FY 2024 Results Highlights
FY 2024 Results Highlights Operational Excellence Amid Financial Realignment Revenue (crn) EBITDA ¢ecp bn) t Profit ustomers (mn) Normalized (EGP bo) Fixed Voice: 13.2 (6% YoY) 82.0bn 33.0bn Fixed Data: 10.3 (8% YoY) +45% YoY +45% YoY . Mobile: 14.0 (13% YoY) Customer base continues to expand consis
Slide 31: Financial Overview FY 2024
Financial Overview FY 2024 Total Revenues (EGP mn) (sas) FY 23 Net Debt (EGP mn) -38,364 Net debt FY 23 H&C Enterprise 2,699 Cash and cash equiviants IC&N Domestic ICA -18,686 Total Debt FY 24 “72,487 Net debt FY 24 EBITDA (EGP mn) EBITDA FY 23 Sales revenue Opex SGBA Employee cost EBITDA FY 24 FCFF
Slide 32: Income Statement (FY 2024)
Income Statement (FY 2024) Revenue Top-line witnessed a significant 45% YoY increase, driven by a 42% YoY increase in Retail revenue and a 48% YoY increase in Wholesale revenue. Data was the main growth driver, reaching EGP 32.0bn, contributing to 41% of the annual growth, This was supported by two
Slide 33: Free cash flow FCFF / EBITDA
9,712 7,236 4,376 2,393 (2,117) (1,481) (1,611) (3,563) FCFF / EBITDA 68% 51% 14% 13% -12% -5% -16% -7% FY 2021 FY 2022 FY 2023 FY 2024
Slide 34: Main Events
Main Events Read More Read More Read More Read More
Slide 35: Main Events
Main Events Read More Read More Read More Read More
Slide 36: Main Events
Main Events Read More Read More Read More Read More
Slide 37: Main Events
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Slide 38: Main Events
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Slide 39: Historical Performance (2021-2024)
Historical Performance (2021-2024)
Slide 40: Revenue breakdown
14,072 17% 31,941 39% 14,210 17% 9,310 7,222 11% 5,281 9% 7%
Slide 41: Financial Highlights
Financial Highlights Excellent Operational Performance in a Volatile Market Revenue (EGP mn +121.2% 4,273} FY 2021 FY 2022 FY 2023 FY 2024 Operating Profit (EGP mn) +104.0% ‘ -=———_11+1—™_m™™ FY 2021 FY 2022 FY 2023 FY 2024 EBITDA (EGP mo) 14,193 FY 2021 FY 2022 FY 2023 FY 2024 Net Profit* (EGP mn)
Slide 42: Income statement FY 2021-FY 2024
Growth YoY EGP mn FY 2021 FY 2022 FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 Revenue 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)/Expenses Depreciation Amortization (Provision)\ Reversal of Expected Credit Lo
Slide 43: Cash, Total Debt, Net Debt
Cash Total Debt Net Debt 1,08 0 100.00 1,06 0 1,04 0 1,02 0 -100.00 1,00 0 980 -300.00 960 940 920 -500.00 900 880 -700.00
Slide 44: Capex (excluding mobile licenses)
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 (excluding mobile licenses) 35,00 0 200 % 180 % 30,00 0 160 % 25,00 0 140 % 120 % 20,00 0 100 % 15,00 0 80% 60% 10,00 0 32% 43% 40% 5,000 30% 36% 20% - 0%
Slide 45: Dividend Analysis
Dividend Analysis Steady dividend payments while reinvesting funds to support business-growth initiatives: a solid demonstration of Telecom Egypt's financial strength and reassurance of its future prospects and performance. FY 2024 Multiples* PE 6.92x PS 0.69x EV/EBITDA — 3.91x *As of 31 December 20
Slide 46: Our Performance in Context
Our Performance in Context FY 2024 FY 2025 guidance budget Mid double-digit Revenue growth YoY EBITDA margin (%) High 30s In-service: CapEx/Sales (%) Mid 20s* FCFF/EBITDA (%) Early 40s *Revised, including the mobile licenses CapEx +** Excluding the mobile licenses CapEx
Slide 47: Thank You
Thank You Investor relations team investor.relations@te.eg Check our website: ir.te.eg