Telecom Egypt · EGX:ETEL
Telecom Egypt — Investor Presentation (September 2024)
45 slides from Telecom Egypt's investor presentation, September 2024
Slide 1: Corporate Presentation
Corporate Presentation telecomegypt September 2024
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 ~~ H1 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: %3 %6 %21 +70 69-60 %8 59-50 49-40 %12 39-30 29-20 %20 %14 9-10
%3 %6 %21 +70 69-60 %8 59-50 49-40 %12 39-30 29-20 %20 %14 19-10 9-0 2020 2021 2022 2023 %16 2020 2021 2022 2023
Slide 7: Macroeconomic Indicators (2/2)
Macroeconomic Indicators (2/2) Real GDP Growth (%) o s > eo AN oS a Gs y sv y se 2 oH £ = £ e asd as Bs aS Source: IMF CBE Discount Rate 27.8%* 11.8% 13.5% 9.8% 9.3% 8.8% 9.8% s £ £ F&F we LS x *Latestrate to date Source: Central Bank of Egypt Average USD to EGP Rate 47.6 35.9, 30,1 31.031.0 31.0 23
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 Mohamed Nasr Eldin Mohamed Abo-Taleb Seif Allah Mounib Mohamed Alfowey Managi President ide Vice President Chief Executive Office nmercial Officer & Whol ic Chief Technology Officer TE eee | Elhossaini Adel ident Acting Vi Affairs Officer c e fi
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 Rela
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 31 July 2024) Ownership Composition Free-float Composition Breakdown of Free-float by Country Retail 4% Free-float 30% 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 | [ 6+ | [ Planned Submarine Cables | [10] [| Cable Landing St
Slide 17: Digitizing Egypt
Digitizing Egypt Bridging the Digital Gap and Enhancing the Lives of all Egyptians Fiber Access Network Capacity (In 000 Homes) 3,020 Onn n--nnnnnnnnn FY 2020 Telecom Egypt's Contribution to Digital Egypt 2030: FTTH rollout ® Greenfield deployment Education FY 2021 FY 2022 FY2023 H1 2024 G * Acceler
Slide 18: Retail Segment
Retail Segment
Slide 19: FY 2019 FY 2023 H1 2023
• • • • • • • 31,507 21,395 14,283 15,250 FY 2019 FY 2023 H1 2023 H1 2024
Slide 20: 12, 14, .0 10, 47. 12, 8,0 .0 0, 000 42. 0 6,0 00
12, 000 14, 000 270 .0 10, 000 47. 0 12, 000 8,0 00 220 .0 10, 000 42. 0 6,0 00 8,0 00 170 .0 37. 0 6,0 00 4,0 00 4,0 00 120 .0 32. 0 2,0 00 2,0 00 0 70. 0 0 27. 0
Slide 21: WE SPACE
WE SPACE New Shift in our Fixed Broadband Offering Bundle a Comparisons ale sn . von Fort me 100% 0-00, Date Apr 2018 Oct 2020 Jan 2024 f 7 Speed 5-100 Mbps smear 30-200 Mbps 30-200 Mbps <> Sy Price 110-300 EGP Eee 120-1000 EGP 160-1350 EGP 140-1000 GB 140-1000 GB Al Quota 100-500 GB 21
Slide 22: FY 2021 FY 2022 FY 2023
6 13,107 12,449 12,489 7,342 9,365 33,863 35,773 16 30,037 26,450 27,800 28,225 29,166 30,190 27,501 26,858 25 41,183 43,753 45,083 47,752 49,036 27 FY 2020 FY 2021 FY 2022 FY 2023 H1 2024
Slide 23: Wholesale Segment
Wholesale Segment
Slide 24: Wholesale Segment
Wholesale Segment Domestic e----4 rctt IC&N (International Cables & Networks) * Egypt's telecom infrastructure provider ‘\ u + Largest international network footprint * 3-10 year agreements with MNOs x t in the region * — Indirect play on Data market growth ‘. L + Preferred East-West international r
Slide 25: 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 26: 1,299 - - - - -
1,299 446 557 706 463 758 - - - - 28 - 8 43 29 30 24 19
Slide 27: Investment in Vodafone Egypt
Investment in Vodafone Egypt
Slide 28: 50,0 % 8,00 12,0 49,5 .00 45,0 % ,00 0 49,0 00 10,0 00
50,0 00 390 % 8,00 0 12,0 00 49,5 00 120 .00 45,0 00 340 % 7,00 0 49,0 00 10,0 00 40,0 00 110 .00 290 % 6,00 0 48,5 00 35,0 00 8,00 0 100 .00 48,0 00 240 % 5,00 0 30,0 00 47,5 00 90. 00 25,0 00 190 % 4,00 0 6,00 0 47,0 00 80. 00 20,0 00 140 % 3,00 0 46,5 00 4,00 0 15,0 00 46,0 00 70. 00 90% 2,00 0 1
Slide 29: H1 2024 Highlights
H1 2024 Highlights
Slide 30: H1 2024 Results Highlights
H1 2024 Results Highlights Price-Ups Across Retail Segment Alleviate Inflation Pressures Fixed Voice: 12.8 (8% YoY) 38.0bn 1 5.5bn Fixed Data: 9.8 (8% YoY) +35% YoY +29% YoY Mobile: 13.1 (4% YoY) Customer base continues to steadily grow across all segments. Total revenue climbed 35% YoY, backed by a
Slide 31: Financial Overview H1 2024
Financial Overview H1 2024 Total Revenues (EGP mn) (asm) H1 23 H&C Enterprise Domestic ICA IC&N H1 24 Net Debt (EGP mn) -25,033 a -11,720 -73,427 H1 23 Cash Short-term Debt Long-term Debt HI 24 Total Debt EBITDA (EGP mo) (coe) LY H1 23 Sales revenue Opex SG&A Employee cost = H124 FCFF (EGP mn) 2,079
Slide 32: Income Statement (H1 2024)
Income Statement (H1 2024) Revenue Top-line witnessed a significant 35% YoY increase, on a 40% increase in Retail revenue anda 28% increase in Wholesale revenue. Data was the largest contributor to revenue growth, with 48%, thanks to the price up across all retail segments in January 2024 and the 8%
Slide 33: FCFF / EBITDA
619 1,134 (239) (1,656) (10,440) FCFF / EBITDA FCFF(excl.Mobile Licenses) / EBITDA 53% 5,141 17% 26% 4% 8% -14% -5% -3% -26% 1,097 753 611 -68% (1,203)
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
Slide 37: Historical Performance (2020-2023)
Historical Performance (2020-2023)
Slide 38: Top-line Breakdown
Top-line Breakdown FY 2023 Performance Revenue Breakdown Revenue Segment Y Total revenue increased by 28% YoY, landing at an astounding EGP 56.7bn, with Retail FY 2023 comprising 56% of the total revenue (driven by higher Data revenue and other Enterprise revenue) and Wholesale growth mainly driven
Slide 39: Financial Highlights
Financial Highlights Excellent Operational Performance in a Volatile Market Revenue (EGP my 477.6% I +52.8% ; +28.0% 56,679) 44,273 FY 2020 FY 2021 FY 2022 FY 2023 Operating Profit (EGP mn) +108.0% I +41.7% 427.9% I 2 FY 2020 FY 2021 FY 2022 FY 2023 EBITDA (EGP mn) +103.7% 11,126 FY 2020 FY 2021 FY
Slide 40: Income statement FY 2020-2023
Growth YoY EGP mn FY 2020 FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023 Revenue 37,088 44,273 56,679 16% 19% 28% 26% 20% 15% 19% 26% 8% 26% 9% 27% -3% 10% 58% -8% 34% 73% Total Employee Cost (7,501) (8,655) (11,007) 9% 15% 27% Call Costs (6,021) (6,717) (8,348) 8% 12% 24% COGS (excl. Above Expense
Slide 41: Balance Sheet Highlights
Balance Sheet Highlights Total Debt Net Debt (EGP mn) (EGP mn) mw Short Term jj Long Term mCash gTotal Debt ©}Net Debt 49,342 2,003 6,811 30,826 20,287 16,321 30,826 49,342 118,284) i 24,015; 138,364 FY 2020 FY 2021 FY 2022 FY 2023 FY 2020 FY 2022 FY 2023 Debt - Foreign Currency Portion Net Debt/EBI
Slide 42: 25,0 % 20,0 % 15,0 % 10,0 % 5,00 0 50% - 0% 25,0
25,0 00 250 % 20,0 00 200 % 15,0 00 150 % 10,0 00 100 % 5,00 0 50% - 0% 25,0 00 90% 20,0 00 80% 70% 60% 15,0 00 10,0 00 50% 40% 5,00 0 30% - 20%
Slide 43: 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 2023 Multiples* PE 6.61x PS 1.13x EV/EBITDA = 4.53x *As of 31 December 20
Slide 44: Our Performance in Context
Our Performance in Context H1 2024 actual Revenue growth YoY EBITDA margin (%) CapEx/Sales (%) FCFF/EBITDA (%) 1) Revised, excluding the mobile licenses CapEx 2) Excluding the mobile licenses CapEx FY 2024 budget Mid double-digit High 30s In-service: Mid 20s’ Early 40s 44
Slide 45: Thank You
Thank You Investor relations team investor.relations@te.eg Check our website: ir.te.eg
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