Slide 1: Results presentation Q2 2023
= a Results presentation\ =~ ¥ telecomegypt Q2 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: H1 2023 results highlights
H1 2023 results highlights Robust operational results all-around Revenue (EGP bn) strong ma Voice Data ¥ Total revenue landed at EGP 28.1bn, increasing 38% YoY, mainly due to the EGP 5.5bn increment in . 1 1 8 9 1 wholesale on notable cable sales (+ EGP 1.5bn), higher : 8 1 Fixed ° ° IDD and infrast
Slide 4: Q2 2023 results highlights
Q2 2023 results highlights Another quarter of strong top-line results Revenue (EGP bn) 14.2bn +29% YoY / +2% QoO. Voice Data Fixed 1 1 ° 8 9 ° 1 +5% YoY +8% YoY Mobile 1 2 ° 6 +7% YoY EBITDA 5.8bn 30% YoY / -5% Q0oO. Net profit 2.9bn 19% YoY / -24% QoQ. *Adjusted 25% YoY EBITDA margin of 41%, +24 bp
Slide 5: Q2 2023 results versus analyst consensus
Revenue EBITDA EBITDA margin Net profit In EGP millions Analyst 1 13,448 5,418 40.3% 2,655 Analyst 2 13,390 5,577 41.7% 2,844 Analyst 3 14,006 6,093 43.5% 3,063 Analyst 4 12,211 4,640 38.0% 2,172 Analyst 5 12,900 5,131 39.8% 2,501 Analyst 6 14,110 6,087 43.1% 2,866 Analyst 7 12,787 5,208 40.7% 2,289
Slide 6: Highlights of the main events in H1 2023
Highlights of the main events in H1 2023 ©
Slide 7: Financial highlights
Financial highlights Revenue EBITDA (€GPmn) (EGP rm) 429.1% 437.9% +29.8% +48.4% r f r r +1.6% 5.2% nd 28,136 nd 11,961 20,401 ara 14,177 6,142 4,482 Q2 2022 Q1 2023 Q2 2023 H1 2022 H1 2023 Q2 2022 Q1 2023 Q2 2023 H1 2022 H1 2023 Operating profit Net profit (GP mr) (GP mn} +8.2% 445.4% +19.3% +77.1%
Slide 8: Customer base and ARPU
Customer base and ARPU Fixed line Fixed broadband (In. 0005) (in 0005) 11,816 9,085 11,727 8,907 11,587 8,766 11,412 8,610 127 8436 i 2 2022 03 2022 04 2022 1 2023 2 2023 2 2022 3 2022 04 2022 1 2023 2 2023 Mobile ARPU ‘in000) tmecer 12,557 12,489 12,444 —o—Fixed line ARPU 152.94 154.13 157.13 161.2
Slide 9: H1 revenue bridge by business unit
+38% 2,698 1,456 1,359 516 1,705 28,136 20,401 H1 22 Total Revenues Home & Consumer Enterprise Solutions Domestic Wholesale ICA IC&N H1 23 Total Revenues
Slide 10: Revenue by business unit
Revenue by business unit Preserving the growing pace across all business units Home & Enterprise Domestic International International Customers & Consumer Pp Carriers Affairs Networks +15.3% 416.4% +0.6% +19.8% 411.9% +44.0% 454.2% +64.3% +120.6% +133.6% +4.9% 15.0% [ -25,8% | 49.7% l | 433.3% I br
Slide 11: Income statement (Q2)
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 (expense) / income • Other OPEX Depreciation Amortization • (Pro)\ Reversal of ECL provision Operating profit Margin Income from investments • Net finance
Slide 12: Income statement (H1)
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 (expense) / income Depreciation • Other OPEX Amortization • (Pro)\ Reversal of ECL provision Operating profit Margin • Non-operational Income from invest
Slide 13: H1 operating profit bridge
+45% 2,299 1,205 7,734 330 311 1,258 32 7,367 5,068 H1 22 Revenue COGS Employee SG&A Provisions \ Depr & Amort. Other H1 23 Operating Profit Cost ECL Reversal Income/Expense Operating Profit 13
Slide 14: Q2 operating profit bridge
+8% 984 657 3,193 215 349 748 21 3,434 3,173 Q2 22 Revenue COGS Employee SG&A Provisions \ Depr & Amort. Other Q2 23 Operating Profit Cost ECL Reversal Income/Expense Operating Profit 14
Slide 15: 1,2 30.00 1,0 10.00 -10.00 -30.00 -50.00 0 -70.00
1,2 00 30.00 1,0 00 10.00 800 -10.00 600 400 -30.00 200 -50.00 0 -70.00
Slide 16: Capex, license and capex/sales
5,00 0 100 % 4,50 0 90% 4,00 0 80% 3,50 0 70% 3,00 0 60% 2,50 0 50% 2,00 0 40% 1,50 0 30% 1,00 0 20% 500 10% - 0% Capex License Capex/sales 12,0 00 100 % 90% 10,0 00 80% 70% 8,00 0 60% 6,00 0 40% 50% 35% 31% 36% 40% 4,00 0 30% 2,00 0 27% 20% 10% - 0%
Slide 17: H1 2019 H1 2020 H1 2021 H1 2022 H1 2023
121% 17% 8% -5% -14% H1 2019 H1 2020 H1 2021 H1 2022 H1 2023
Slide 18: Our performance in context
Our performance in context H1 2023 FY 2023 actual budget Early double Revenue growth YoY digit Mid-to-high 30s EBITDA margin (%) In-service: Earl CapEx/sales (%) arly FCF/EBITDA (%) * Mid-20s 18 * Adjusted for the dividends received from VFE in July 2023 amounting to EGP 2.1bn, FCF/EBITDA reaches 4%
Slide 19: Thank You
Thank You Investor relations team Check our website investor.relations@te.eg ir.te.eg