Telecom Egypt · EGX:ETEL
Telecom Egypt — Investor Presentation (December 2023)
43 slides from Telecom Egypt's investor presentation, December 2023
Slide 1: Corporate presentation
Corporate presentation telecomegypt December 2023
Slide 2: Contents
Contents Company snapshot Macro overview Redefining our strategy — Our growth potential Financial highlights (2020-2022) 9M 2023 highlights
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: South Africa 3.0% ROW
• • • • • South Africa 3.0% ROW 2.3% Retail, 4% Europe Free float, GCC 3.8% 30% 11.4% USA Egypt Institutional, 26% Government, 20.2% 59.2% 70%
Slide 5: Macro overview
Macro overview
Slide 6: Illiterate Literate Primary
2% 5% 0-9 8% 25% 10-19 20-29 10% 30-39 40-49 14% 50-59 19% 60-69 17% 70+ 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 30,131-0 31.0 23.2 166 16.2 15.816.016.0 15.8 15.8157 15.8 15.8 162 8 £ - a of . SS PP PP DDD Do od DP PP 8 ss aS sy s BS We ge GW ok ge YT Wek ge” WOT weg * 2020 and 2021 growth forec
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 Busine: of Telecom Egypt 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 t
Slide 11: Digital Customer Relationships
© igital Customer elationships nnovation & Partnerships Core Business alue Creation -business
Slide 12: Strategic priorities
© 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 2019 FY 2022 9M 2022
• • • • • • 27,527 23,155 19,930 • 14,283 FY 2019 FY 2022 9M 2022 9M 2023
Slide 15: Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Fixed data
30% 25% 20% 15% 10% 5% 0% Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 -5% -10% Fixed data traffic Mobile data traffic -15% YoY MoM
Slide 16: Mobile commercial roadmap
Mobile commercial roadmap = ) E Gi Data Plans Agda3 Kart Indigo Mobile NITRO Data Plans = Iridium Oct-18 in Addition to 168 For EGP 5 Soe Enterprise Control Tazbeet Indigo ADSL & Plus Jan-21 Feb-21 July-21 Feb-22 z 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
Slide 18: FY 2019 FY 2020 FY 2021
10, 000 190 .0 9,0 00 14, 000 8,0 00 39. 0 170 .0 12, 000 7,0 00 37. 0 10, 000 150 .0 6,0 00 35. 0 5,0 00 8,0 00 130 .0 4,0 00 33. 0 6,0 00 110 .0 3,0 00 31. 0 4,0 00 2,0 00 90. 0 29. 0 2,0 00 1,0 00 0 70. 0 0 27. 0 FY 2019 FY 2020 FY 2021 FY 2022 9M 2023 FY 2019 FY 2020 FY 2021 FY 2022 9M 2023
Slide 19: FY 2019 FY 2020 FY 2021
32,588 32,230 31,293 30,800 27,715 FY 2019 FY 2020 FY 2021 FY 2022 9M 2023
Slide 20: Mobile market
Mobile market An ever-expanding customer base Mobile market voice and data penetration —e—Voice penetration —e— Data penetration 115% 100% 101% 105% 111% ¢ ° —o- —o— 68% 74% 64% —e 56%, _—e— —o— A FY 2019 FY 2020 FY 2021 FY 2022 9M 2023 Source: MCIT & operators’ disclosures Mobile data market subscr
Slide 21: FY 2019 FY 2022 9M 2022
• • • • • • • • 18,803 16,746 11,522 12,344 FY 2019 FY 2022 9M 2022 9M 2023
Slide 22: 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
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) 1m International Direct Dialing (IDD) mi Transit FY 2019 FY 2020 FY 2021 FY 2022 9M 2022 9M 2023 Int'l Carriers revenue breakdown in USD* ome) International Direct Di
Slide 26: 40,0 % 47,5 .00 47,0 35,0 % .00 46,5 00 30,0 00 290 %
40,0 00 390 % 47,5 00 120 .00 47,0 00 35,0 00 340 % 110 .00 46,5 00 30,0 00 290 % 100 .00 46,0 00 25,0 00 240 % 90. 00 45,5 00 20,0 00 190 % 45,0 00 80. 00 15,0 00 140 % 44,5 00 70. 00 10,0 00 90% 44,0 00 60. 00 5,00 0 40% 43,5 00 43,0 00 50. 00 - -10% 8,00 0 6,00 0 7,00 0 5,00 0 6,00 0 4,00 0 5,00
Slide 27: FY 2019 FY2022 9M 2022
* 3,401 2,833 2,682 2,027 FY 2019 FY2022 9M 2022 9M 2023
Slide 28: Main events
Main events Read More Read More Read More Read More Read More
Slide 29: Financial highlights (2020-2022)
Financial highlights (2020-2022)
Slide 30: Financial highlights
Financial highlights Excellent operational performance in a volatile market Revenue (EGP me) +38.7% +19.4% +30.0% I I nea k1,958 7,088| 31,912 [32,274 FY 2020 FY 2021 FY 2022 9M 2022 9M 2023 Operating profit (EGP mn) 470.2% I +16.0% 423.2% I I 0,611 8,610 5,897 FY 2020 FY 2021 FY 2022 9M 2022 9M 202
Slide 31: Revenue by business unit
Revenue by business unit Data the driving force behind retail revenue Home & Consumer Enterprise Domestic +51.2% +50.6% 419.9% +15.9% +26.0% +17.3% 2020 2021 2022 9M 20229M 2023 2020 2021 2022 9M 20229M 2023, 2020 2021 2022 9M 20229M 2023 FY 2022 performance Y Total revenue up by 19% YoY, with retai
Slide 32: Income statement
Growth YoY In EGP mn 2020 2021 2022 2021 2022 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)/e
Slide 33: 1,2 30.00 10.00 1,0 -10.00 -30.00 -50.00 0 -70.00
1,2 00 30.00 10.00 1,0 00 800 -10.00 600 400 -30.00 200 -50.00 0 -70.00
Slide 34: 14,0 % 12,0 % 10,0 % 8,00 6,00 % 4,00 0 50% 2,00 0
14,0 00 250 % 12,0 00 200 % 10,0 00 150 % 8,00 0 6,00 0 100 % 4,00 0 50% 2,00 0 - 0% 18,0 00 80% 16,0 00 14,0 00 12,0 00 10,0 00 60% 8,00 0 6,00 0 4,00 0 40% 2,00 0 - 20%
Slide 35: Cash flow analysis
Cash flow analysis Net cash from operating activities (EGP mo) FY 2019 FY 2020 FY 2021 FY 2022 9M 2022 9M 2023 “Including ERP cost of EGP 1.3bn FCFF/EBITDA (EGP mo) FCF / EBITDA FCFF (excl.VFE di 3% HEYA3% YaN=Ty — 6% 13% -24% 144% FY 2019 FY 2020 FY 2021 FY 2022 9M 2022 9M 2023 FCFF (€GP me) mFCFF
Slide 36: 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 -
4.5 0 4.0 0 3.5 0 3.0 0 2.5 0 2.0 0 1.5 0 1.0 0 0.5 0 -
Slide 37: 9M 2023 highlights
9M 2023 highlights
Slide 38: 9M 2023 results highlights
9M 2023 results highlights Three consecutive quarters of strong financial results Revenue (EGP bn) 42.0bn 30% YoY Voice Data Fixed 1 2.4 9.3 +9% YoY +8% YoY Mobile 1 2.5 +6% YoY EBITDA (EGP bn) 17.6bn 32% YoY EBITDA margin of 42%, +59 bps YoY Net profit 9.1b)n 48% YoY Net profit margin of 22%, +268
Slide 39: Revenue bridge 9M 2022 to 9M 2023
+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 40: Income statement 9M 2023
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 41: Analyst consensus versus 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% 2,4
Slide 42: 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 42
Slide 43: Thank You
Thank You Investor relations team Check our website investor.relations@te.eg ir.te.eg
Telecom Egypt — Investor Presentation (December 2023) on 6ix