1

Contents

Macro overview 5

Redefining our strategy 8

Our growth potential 12

Q1 2020 highlights 27

Company snapshot 4

Financial highlights (2017-2019) 34

2

Disclaimer

This document has been prepared by Telecom Egypt (the “Company”) 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 to our future business and financial performance and future events or

developments involving Telecom Egypt that may constitute forward-looking statements. Such statements are based on the current expectations and certain assumptions of

Telecom Egypt's management, of which many are beyond Telecom Egypt's control. Such assumptions are subject to a number of risks and uncertainties. Should any of these risks or

uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results may (negatively or positively) vary materially from those

described explicitly or implicitly in the relevant forward-looking statement. Telecom Egypt neither intends, nor assumes any obligation, to update or revise these forward-looking

statements in light of developments, which differ from those anticipated.

This document does not constitute an offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares of the Company and neither it nor any

part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. This presentation has been made to you solely for information

purposes and is subject to amendment. This presentation (or any part of it) may not be reproduced or redistributed, passed on, or the contents otherwise divulged, directly or

indirectly, to any other person or published in whole or in part for any purpose without the prior written consent of the Company.

3

Company snapshot

Heritage transformed

4

TE’s incorporation

• Founded in 1854 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

• Acquired a 45% stake in Vodafone Egypt in 2003 to 2006

• Rebranded the retail business to WE in 2017 with the launch of

mobile services

Ownership: Highly diversified solid institutional shareholder base

Market Cap of USD 1.2bn | ETEL EY/ ETEL.CA (as of April 2020)

Free float

composition

Breakdown of

institutions

Government,

80%

Free float,

20%Institutional,

16%

Retail, 4%

USA

32%

Europe

21%

GCC

18%

Egypt

17%

South

Africa

9%

ROW

3%

Macro overview

5

26%

11%

19%

29%

3%

12%Illiterate

Literate

Primary

Secondary

High school

University degree

Demographic indicators

Young population to continue to drive growth

Illiteracy ↓ from 30% in 2016

74% of population is literate

Population (mn) Age distribution (% of population)

Educational attainment (% of population) Unemployment rate (% of population)

Source: CAPMAS 2020 censusSource: CAPMAS 2017 census

Source: CAPMAS 2017 census Source: Ministry of Finance

25%

19%

17%

15%

10%

8%

5%2%

0-9

10-19

20-29

30-39

40-49

50-59

60-69

70+

c2mn new customers in

the market every year

61% of population

below 30 years

13.0% 12.8% 12.7%12.0%

8.9%

2013/14 2014/15 2015/16 2016/17 2017/18

6

94.2

96.2

98.2

99.8 100.2

2016 2017 2018 2019 Q1 2020

8.4%

12.4%

13.9%

25.9%

32.3%31.9%

33.3%

19.9%

11.6%10.9%

8.6%8.3%

8.9%

6.4%

2.6%2.4% 1.9%1.5%

Real GDP growth (%)

Macro indicators

A broad set of healthy indicators across the year

Average USD to EGP rate

CBE discount rate Core inflation (YoY)

Source: IMF Source: Central Bank of Egypt

Source: Central Bank of Egypt Source: Central Bank of Egypt

7

11.3%12.3%

15.3%

17.3%

19.3%

18.3% 17.3%

16.3%14.8%

13.8%

12.8%

9.8%

4.34.1

5.35.6

2.0

2.8

* 2020 and 2021 growth forecasts were 5.9% and 6% respectively preceding the Covid-19 pandemic

*

8.1 8.9 8.9

14.8

17.8 18.1 17.8 17.8 17.7 17.8 17.9 18.0 17.6 17.1

16.6 16.2 15.8

15.9

* Average rate as of 14 June 2020

*

Redefining our strategy

8

Adel Hamed

Managing Director &

Chief Executive Officer

Mohamed Shamroukh

Senior Vice President

Chief Financial Officer

Mohamed Abo-Taleb

Vice President

Chief Commercial Officer

Essam Abdeldayem

Vice President for Human

Resources

Seif Allah Mounib

Vice President for International

Wholesale

Our leadership team

Caliber from the mobile & fixed industries with local & int ’l experience

Antar Kandil

Vice President

Chief Information Officer

Abdelsatar Elsheikh

Vice President for Regional

Affairs

Mohamed Alfowey

Vice President for Technical

Affairs9

Heading towards…

A telco demonstrating its ability to seize new opportunities

The premium

digital hubDigital WE

The leading

ICT provider

Offering our customers best

value, data-centric value

propositions

Expanding from an

established international

route to an eminent regional

digital hub

Embracing digital

transformation internally to

empower our customers &

employees

Financial &

Operational

Excellence

Expanding efficiency &

optimization measures to

enhance profitability

10

WE digital transformation

Our strategy is built by creating a comprehensive digital ecosystem to optimize

resources and boost the ICT economy

Digital transformation ecosystem

Data centers

& cloud IOTDigital

platforms OTT

Digital transformation process

WE digital

strategy &

objectives

Digital team &

governance

Internal digital

transformation

Digital

market

disruption

Complete

digital

inclusion

Apps

& solutions

Cloud platforms

World class data center

facilities

Network connectivity

Submarine cables & fiber connectivity

‘WE Digital’

Capitalizing on our assets

11

Our growth potential

12

6,616

14,283

3,151 3,917

2016 2019 Q1 2019 Q1 2020

FY 2019

EGP 14.3bn

+27% YoY

• Underpenetrated data market leading to a

growing fixed & mobile customer base

• Improved broadband connectivity and continuous

demand for higher usage enhances ARPU

• Protocols with government entities for digital

transformation:

− NUCA

− Ministries i.e. schools project

− Digital transformation initiative to connect

Egyptian governorates with fiber

• New cities

Retail segment

Growth drivers at a glance

• Growing mobile customer base

• Growing fixed voice customer base

driven by fixed broadband connectivity

Voice Data

Other

Retail revenue growth

( in EGP mn)

29%

CAGR

13

EGP 9.4bn

+33% YoY

EGP 3.6bn

+16% YoY

EGP 1.2bn

+14% YoY

24%

Best value

recharge

platform

‘WE Internet’

(1st

FBB revamp) +

postpaid mobile

launch

Widening our retail portfolio

Moving beyond traditional telecom services

Sep 2016 Sep 2017 Feb 2018

Nov 2018 Aug 2018 Apr 2018

July 2019 Nov 2019 Coming next

4G mobile

license

acquisition

Prepaid

mobile

launch

Fully convergent

product

‘Indigo Plus’

‘Level Up’

PlayStation

packages

‘WE SPACE’

(2nd

FBB revamp)

‘WE Pay ’

WE digital wallet

‘WE IPTV’

1st

nationwide

IPTV license

14

WE SPACE

A new shift in our fixed broadband offering

Comparison of

the entry level bundle

Up to30 Mbps

EGP 120

140 GB

July 2019

Up to5 Mbps

EGP 110

100 GB

April 2018

Speed

Price

Quota

Launch date

15

Market fixed broadband subscribers

(in 000’s)

Market fixed voice and data household penetration

WE fixed voice

Fixed services

Growing customer base with healthy ARPU

WE fixed broadband

16

6,465

7,145

7,865

8,760

9,523

28.7

29.6

30.5

31.2

33.1

27 .0

29 .0

31 .0

33 .0

35 .0

37 .0

39 .0

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,00 0

FY 2016 FY 2017 FY 2018 FY 2019 Q1 2020

Subscribers ( in 000's )

ARPU

3,382

4,070

5,237

5,8075,925

83.1

98.3

103.5

111.0 125.1

70 .0

80 .0

90 .0

10 0.0

11 0.0

12 0.0

13 0.0

14 0.0

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FY 2016 FY 2017 FY 2018 FY 2019 Q1 2020

Subscribers ( in 000's )

ARPU

27.7%30.0%

32.4%

35.5%

38.4%

19.0%21.8%

26.9%

29.5%29.6%

FY 2016 FY 2017 FY 2018 FY 2019 Q1 2020

Fixed line

Broadband

4,439

5,197

6,535

7,276 7,340

3,382

4,070

5,237

5,807 5,925

1,057 1,127 1,297 1,469

1,415

FY 2016 FY 2017 FY 2018 FY 2019 Q1 2020

TE

Others

Retail revenue growth driven by data

(in EGP mn)

Fixed services (cont ’d)

Accelerating our fiber replacement project to grasp market opportunities

70% 85%

2018a 2019a 2020e

100%

Fiber access network capacity

(in 000’ homes)

% of households reached with fiber

(excluding the last mile)

17

2,244 2,462 3,108 3,611

851 1,052

3,631

5,049

7,085

9,429

2,083 2,781

741

779

1,086

1,243

217 84

FY 2016 FY 2017 FY 2018 FY 2019 Q1 2019 Q1 2020

Other

Data

Voice 36%

27%

24%

25%

3,096

4,456

6,370

8,448

1,928 2,529

536

593

716

981

155

253

FY 2016 FY 2017 FY 2018 FY 2019 Q1 2019 Q1 2020

Managed Services

Broadband

Data revenue

(in EGP mn)

39%

40%

33%

34%

9,692

12,608

17,567

27,715 27,930

FY 2016 FY 2017 FY 2018 FY 2019 Q1 2020

102%

114%117%

102% 100%

33% 34%37% 39% 43%

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Voice penetration

Data penetration

Mobile market

A growing customer base

*Etisalat restated its customer base starting FY 2016

3.3

Source: Operators’ disclosures

WE's mobile subscribers

(in 000’s)

Mobile data market subscribers

(in 000’s)

Source: MCIT & operators’ disclosures

Mobile market voice and data penetration

18

26,300 28,650

32,790 35,060

39,000

3,820 3,280

3,260 3,210

3,600

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

USB

Mobile data

Source: MCIT

4,247 4,260 4,575

5,129

6,181

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

* Including c380k new data SIMs distributed among school students

*

39,622 44,082 39,647 40,028 40,244

33,883 34,117

29,475 28,098 28,130

33,900 32,300

27,500 26,400 26,400

2,300

3,861 5,129 6,181

FY 2016 FY 2017 FY 2018 FY 2019 Q1 2020

Mobile market subscribers

(in 000’s)

EGP 3.0bn

-15% YoY

EGP 4.4bn

Flat YoY

• Largest international network footprint in the

region

• Preferred East-West international route

• Positioning Telecom Egypt as an eminent digital

hub

+39% YoY

Wholesale segment

Growth drivers at a glance

• Sole provider of international calls to MNOs

• 4-5 year agreements

Domestic

International Carrier Affairs

International Cables &

Networks

• Egypt ’s infrastructure builder

• 3-10 year agreements

• Indirect play on data market growth

Wholesale revenue

( in EGP mn)

FY 2019

EGP 11.5bn

Flat YoY

19

EGP 4.2bn

+16% YoY

7,334

11,522

2,936 3,087

2016 2019 Q1 2019 Q1 2020

16%

CAGR

5%

Egypt

Iraq

Indonesia

Thailand

Myanmar

Morocco

Algeria

France

Qatar

India

Pakistan

Iran

Oman

Yemen

Saudi Arabia

Turkey

Syria

Lebanon

Sudan

Ethiopia

Somalia

Libya

Mozambique

Madagascar

Tanzania

Kenya

Greece

Tunisia

Djibouti

Sri Lanka

Jordan

Maldives

Taiwan

Brunei

VietnamPhilippine

Japan

Korea

Belgium

UK

Singapore

Germany

China

Cyprus

Italy

Portugal

Eritrea

Bangladesh

Australia

U.A.E

Malaysia

SEAMEWE-3

SEAMEWE-4

FLAG

FALCON-HAWK

IMEWE

EIG

SEACOM

TATA

ALETAR/BRYTAR

TE North

GBI

Taba-Aqaba

AAE1

SEAMEWE -5

Alexandros

Trans border Terrestrial Cables with Libya & Sudan

MENA Cable

Our cable network

offers reach and reliability

20

62 338 207

910

270 236

368 386

458

118 90

655

961

2,316 913

226

142

173

439

588

704

154

201

FY 2016 FY 2017 FY 2018 FY 2019 Q1 2019 Q1 2020

Cable Projects

Ancillary Services (O&M)

Capacity Sales

International Customer Support

6 19 12

54

-17

23

21 22

27

7 6

65 54

130 54

13

9

17 25

33

42

9

13

FY 2016 FY 2017 FY 2018 FY 2019 Q1 2019 Q1 2020

Cable Projects

Ancillary Services (O&M)

Capacity Sales

International Customer Support

41 62 45 47 12 14

277 212

204 214

52 58

FY 2016 FY 2017 FY 2018 FY 2019 Q1 2019 Q1 2020

International Direct Dialing (IDD)

Transit

Int ’l Carriers revenue breakdown in EGP

(in mn)

International services

Growth across the majority of our business lines

Int ’l Customers & Networks revenue breakdown in EGP

(in mn)

Int ’l Carriers revenue breakdown in USD*

(in mn)

* Based on full year and 3-month average USD exchange rates * Based on full year and 3-month average USD exchange rates 21

Int ’l Customers & Networks revenue breakdown in USD*

(in mn)

410

1,099 801 788 219 222

2,794

3,769

3,623 3,595

909 914

FY 2016 FY 2017 FY 2018 FY 2019 Q1 2019 Q1 2020

International Direct Dialing (IDD)

Transit

Agreements with domestic MNOs

Securing long-term revenue streams

Securing longer-term agreements with

domestic mobile operators

Boosting our wholesale revenue stream by

monetizing our infrastructure investmentsOur main goals 1 2

1.5bn

Transmission Services

International Services 2bn

3bn

1.5bn

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2028

Transmission Services 10.85bn1.5bn

1.5bn

3bn

22

4bn3.5bnInternational Services

1.5bn1.5bnTransmission Services

International Services 12bn

2bn

669

2,833

647 469

2016 2019 Q1 2019 Q1 2020

23

Income from Vodafone

(in EGP mn)

62%

CAGR

* Including the EGP 0.5bn from the VIS sale to Vodafone Group.

*

Vodafone investment pays off in 2019

• TE reached an agreement with Vodafone to collect

EGP 5.5bn, representing +90% of its share of

Vodafone’s retained earnings as of Mar 18.

• TE received EGP 4.8bn in March 2019 and the

remaining EGP 0.7bn will be collected in July 2020.

• The proceeds received in March were used to settle

TE’s EGP denominated debt.

EGP 4.8bn

EGP 0.7bn

EGP 0.5bn

Dividends distribution

• TE received an extraordinary dividend of EGP

0.5bn, representing its share of the Vodafone

International Services (VIS) sale to Vodafone Group.

• The proceeds were used to finance the extension

of TE’s early retirement program (ERP).

March 2019

July 2020

November 2019

-28%

Highlights of the main events during FY 2019

24

Announced a change in the BoD by a decree from the Egyptian Prime

Minister.

2019 business calendar

Announced the BoD’s approval to proceed with a voluntary early

retirement program for TE employees.

Signed high-speed bitstream services agreement with Orange Egypt.

Telecom Egypt’s Ordinary General Assembly (GA) appointed its BoD for a

new term of three years. It approved the change of two independent

board members.

Signed two 10-year transmission and infrastructure agreements with

Vodafone Egypt valued at EGP 10.85bn and reached an agreement on

dividend distribution.

Signed MOUs with Huawei, Ericsson, Nokia, CISCO, and Microsoft at

MWC Barcelona 2019 to assess and develop TE’s network.

Signed a binding letter of intent (LoI) with PEACE and its parent

HENGTONG OPTIC-ELECTRIC valued at USD 20mn offering PEACE

redundancy in exchange for competitive pricing on fiber optic cables.

Published an all-encompassing integrated annual report about 2018’s

operations and strategic directions.

Signed a landing party agreement with Pakistan & East Africa

Connecting Europe (PEACE) Cable International Network Co. and PCCW

Global valued at USD 45mn.

Launched ‘WE SPACE’, a new shift in TE’s fixed broadband offering in line

with its large project to develop its network capabilities and improve the

quality of internet services in Egypt.

Ap

rM

ar

Jul

Fe

bJa

nM

ar

Highlights of the main events during FY 2019 (cont ’d)

2019 business calendar

Signed an agreement with Banque Misr to launch ‘WE Pay’. The service is

designed to enable customers to safely and securely send, receive, and

store money using a smartphone application.

Signed two virtual fixed voice agreements and two bitstream

agreements with Etisalat Misr to enable it to provide fixed voice services,

utilizing Telecom Egypt’s network, and new VDSL technology to its

customers.

Signed an agreement with the Administrative Capital for Urban

Development to build and operate telecom networks (ACUD) in the new

administrative capital and to provide smart and security services

networks.

Signed a strategic partnership agreement with Cable Network Egypt

(CNE) to provide Telecom Egypt’s customers with Internet Protocol

television services (IPTV) in collaboration with various content providers.

25

Launched WE’s new digital wallet under the commercial name 'WE Pay',

enabling its customers to enjoy a wide-range of electronic payment

facilities.

Jul

No

vSe

p

Signed a deal with the Saudi Telecom Company (STC) to provide it with

bundled capacities on Telecom Egypt's TE North and MENA cables.

Signed an EGP 1.1bn contract for the 1st phase of the initiative to

connect governmental entities in 5 governorates (Luxor, Aswan, South

Sinai, Ismailia, and Suez) in addition to connecting other governmental

access points across Egypt with fiber

De

c

China Mobile International, Facebook, MTN Global Connect, Orange, STC,

Telecom Egypt, Vodafone, and WIOCC announced that they will partner to

build 2Africa, which will be the most comprehensive subsea cable to serve the

African continent and Middle East region. The consortium and Airtel also signed

an agreement with TE to provide a completely new crossing linking the Red Sea

& Mediterranean.

Highlights of the main events during 2020

26

Feb 05: The FRA asserted that the potential acquisition is subject to the

provisions of Chapter Twelve of the Executive Regulations of the Egyptian

Capital Market Law No. 95/1992 regarding tender offers. This means that STC is

obliged to provide a mandatory tender offer to TE's shareholders with the same

price that they are offering Vodafone Group.

Feb 13: Vodafone Egypt contacted the Egyptian Competition Authority (ECA) to

determine whether Telecom Egypt’s right of first refusal granted to the company

in Vodafone Egypt’s articles of association, if exercised, would be compatible

with the Competition Protection Law.

Feb 19: Telecom Egypt’s BoD approved the hiring of EFG Hermes and Citi as its

investment advisors and Al Tamimi & Co. as its legal advisor to assess all of the

Company’s options regarding the VFE transaction.

2020 business calendar

Ja

n –

Fe

b

Jan 29: Vodafone Group announced that it has signed a Memorandum of

Understanding with Saudi Telecom Company (STC) regarding the potential sale

of Vodafone group’s 55% ownership in Vodafone Egypt to STC for a cash

consideration of USD 2.4bn.

Vodafone Egypt developments

Jun

Ma

y

Telecom Egypt and Etisalat Misr signed two first of its kind agreements relating to

transmission and mobile-to-fixed interconnection. The first agreement extends

for three and a half years with a total value of EGP 2bn, where Etisalat Misr, for

the first time, signs a long-term agreement including an annual commitment.

Additionally, the two companies have signed a mobile-to-fixed termination

agreement.

27

Q1 2020 highlights

Q1 2020 results highlights

Strong operational performance

7.0bn+15% YoY / +3% QoQ

2.3bn+20% YoY / +7 QoQ

1.3bn(19%) YoY / +11% QoQ

Revenue

(in EGP bn)

EBITDA

(in EGP bn)

Customers

(mn)

Net profit

(in EGP bn)

Net profit margin of 19%, (781 bps) YoY,

+138 bps QoQ

Total revenue grew 15% YoY on higher

data revenue, representing c65% of total

growth followed by increased cable

projects and voice revenues.

Customer base grew on all fronts. Mobile

base growth included the distribution of

c380k new data SIMs among school

students (vs. 613k distributed in Q1 2019).

EBITDA grew 20% YoY at a margin of 33%

(+134 bps YoY) thanks to the high margin

revenue mix of data and cable projects.

Net profit landed at EGP 1.3bn, declining

19% YoY due to a 28% YoY decline in

investment income from Vodafone, which

offset the strong operational growth and

the FX gains.

Q1 2020: Data continues to lead the

growth

5.9+7% YoY

6.2+46% YoY

9.5+18% YoY

EBITDA margin of 33%, +134 bps YoY, +119 bps QoQ

28

Measures taken in response to the Covid-19 outbreak

Keeping all members of society connected

• Providing free fixed broadband

connectivity to all quarantine hospitals

• Dedicating free hotline numbers to

reach the Ministry of Health and

various clinics for consultations

• Linking Egyptian Cabinet HQs to

ministries using secure solutions

• Proactively supporting SMEs and

impacted companies by extending

billing cycles

• Offering free access to all e-learning

websites

• Providing full technical support for first-

year secondary school online

examinations

• Participating in the #Hemaya initiative

to support the homes of the elderly

and orphans to protect them against

Covid-19

• Distributing 62,500 food boxes to

needy families

• Encouraging employees to work from

home

• Sterilizing all buildings and transportation

vehicles

• Doubling fixed broadband and mobile

quotas for employees

• Raising security measures on TE’s intranet

and VPN

• Extending the grace period for

customers to pay landline invoices

• Promoting digital platforms and

providing some free transactions on

‘WE Pay ’

• Increasing fixed broadband quotas

by 20% through a government

subsidy

Health Government &

enterprises

Education

Customers CSR Employees

29

Post Covid-19 operational indicators

Positive indicators across the board

Selected operational KPIs

FBB data traffic Growth in FBB gross adds

MoM

25%

of our total fixed and

mobile customer base

installed ‘WE app’ as of

May 2020

16x

Jan-May 2020

growth in digital

payments

-18%

-4%

-10%35%

88%

23%*

Average internet

speed 3x

YoY growth in

average speed

as of Apr. 2020

24 Mbps

based on global

Ookla speed test

index as of Apr.

2020

35%

23%

-10%

10%

30%

50%

70%

90%

110%

Jan-20 Feb-20 Mar-20 Apr-20

MoM YoY

35%

23%

Mar-20 Apr-20

30

• NPAT came in at EGP 1.3bn, declining 19% YoY due to a 28% YoY decline

in investment income from Vodafone resulting from one-off costs and

provisions, which offset the strong operational growth and the FX gains.

• The effective interest rate came in at 7.4%, progressing on a QoQ and YoY

basis by 35bps and 280bps, respectively thanks to the debt currency mix.

• VFE’s net income dropped 28% on a QoQ and YoY basis due to one-off

costs and provisions.

• FX gains recorded EGP 443mn due to the depreciation of the USD against

the EGP leading to the revaluation of USD dominated facilities.

• Salaries came in flat QoQ, after normalizing the EGP 210mn reversal in ERP

costs reported in Q4 2019, and only 4% higher YoY, in spite of the annual

salary raise, thanks to the savings from the ERP.

• Advertising costs came in flat YoY, representing 2.8% of the top line, 44bps

lower YoY.

Re

ve

nue

EBIT

DA

Othe

r

OPEX

Ne

t p

ro

fit

Exp

ense

s

No

n-o

pe

ra

tio

na

l

• EBITDA landed at EGP 2.3bn, growing 20% YoY with a margin of 33%

thanks to the high margin revenue mix of data and cable projects.

• D&A grew 38% YoY in line with our accelerated infrastructure expansions.

• Retail revenue rose 24% YoY driven by the growth in data and voice

revenue on an expanding customer base and healthy ARPU. This offset

the decline in other enterprise revenues (9% YoY, 61% QoQ), which are

expected to rebound during the year with the continuation of NUCA and

digital transformation projects

Income statement (Q1 2020)

* COGS exclude employee & call costs. S&D and G&A exclude employee costs & D&A

**Adjusted for the ERP reversal of EGP 210mn in Q4 2019 and minor ERP cost in Q1 2020

Note: All financial figures reported are based on the consolidated financials under The Egyptian Accounting Standards

In EGP mn Q1 2020 Q4 2019 Q1 2019 QoQ YoY

Revenue 7,004 6,793 6,087 3% 15%

Home 3,131 2,817 2,401 11% 30%

Enterprise 786 1,249 750 -37% 5%

Domestic 1,248 894 1,309 40% -5%

ICA 1,136 1,002 1,128 13% 1%

IC&N 703 830 498 -15% 41%

Employee cost (1,690) (1,480) (1,624) 14% 4%

Employee cost (Adj.) (1,688) (1,690) (1,624) 0% 4%

Call costs (1,370) (1,168) (1,134) 17% 21%

CoGS* (1,063) (1,483) (957) -28% 11%

S&D* (441) (342) (329) 29% 34%

G&A* (157) (187) (141) -16% 11%

EBITDA 2,283 2,133 1,903 7% 20%

Margin 33% 31% 31% 119 bps 134 bps

EBITDA (Adj.) 2,285 1,924 1,903 19% 20%

Margin 33% 28% 31% 430 bps 136 bps

Other (expense) / income 62 126 88 -51% -29%

Depreciation (944) (884) (647) 7% 46%

Amortization (177) (180) (164) -2% 8%

Operating profit 1,224 1,196 1,179 2% 4%

Margin 17% 18% 19% (13 bps) (190 bps)

Income from investments 469 645 647 -27% -28%

Net finance (cost) / income 322 2 394 17262% -18%

Net interest (exp.) / income (299) (292) (283) 3% 6%

Tax (402) (370) (321) 9% 25%

Net Profit 1,312 1,179 1,615 11% -19%

Margin 19% 17% 27% 138 bps (781 bps)

EPS 0.77 0.57 0.95 35% -18.8%

**

31

681

135 293

4,709

(463)

Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020

353

501 533

1,399

741

12%12% 11%

23%

11%

0%

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

10 0%

-

200

400

600

800

1,000

1,200

1,400

1,600

Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020

Capex Capex/sales

827

1,663

1,172

2,085

2,574

97 25 26 25

27%

40%25%

34% 37%

0%

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

10 0%

-

500

1,000

1,500

2,000

2,500

3,000

Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020

Capex License Capex/sales

1,313

1,824

1,280

1,977 1,897

Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020

Cash flow analysis

Cash capex

(in EGP mn)

Net cash from operating activities

(in EGP mn)

Note: All financial figures reported are based on Consolidated financials under The Egyptian Accounting Standards.

FCFF

(in EGP mn)

In-service capex

(in EGP mn)

* Including dividends of EGP 4.6bn received from Vodafone

*

* Including a portion of the one-off settlement payment to Etisalat of EGP 847mn

*

32

-0.7x

0.4x

1.1x 1.1x

1.7x

Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020

642

340

578

306

(37)

Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020

1,180 638

998 1,459 1,397

-3,342

-7,293

-13,854

-16,452 -16,992

2,161 6,656 12,855 14,993 15,595

FY 2016 FY 2017 FY 2018 FY 2019 Q1 2020

Net debt

Cash Total debt

75%

15%

3%

5%2%

Q1 2020

Access Network

Transmission

International cable

Customer care

Others

Balance sheet highlights

FCFE

(in EGP mn)

Net debt

(in EGP mn)

Net debt/ EBITDA

(Based on annualized EBITDA)

Breakdown of capex in-service

33

Financial highlights (2017-2019)

34

Revenue

(in EGP mn)

EBITDA

(in EGP mn)

Net profit

(in EGP mn)

Operating Profit

(in EGP mn)

Financial highlights

Double digit EBITDA growth helps maintain net profit in spite of heavy investments

35

18,567

22,771

25,805

FY 2017 FY 2018 FY 2019

+39.0%

+13.3%

5,184

5,8765,834

FY 2017 FY 2018 FY 2019

+12.5%

-0.7%

2,023

3,373

2,549

FY 2017 FY 2018 FY 2019

+26.0%

-24.4%

3,052

3,297

4,399

FY 2017 FY 2018 FY 2019

+44.1%

+33.4%

1 Education reform program

Pha

se

1Pha

se

2

Q3 2018: Connected 2,550 schools with fiber within 2

months, recognizing EGP 482mn.

Q1 2019: Provided data SIMs for students in their first year

of high school.

2 1st

phase of the digital transformation initiative

Pilo

tPha

se

1

Q1 2019: Connected government service buildings in

Port Said with fiber to provide citizens with digital

services.

Connecting 5 more governorates with fiber (Luxor, Aswan,

South Sinai, Ismailia, and Suez) in addition to connecting

other governmental access points across Egypt.

613kdata SIMs

4 daysto distribute the SIM

cards

8,000

TE employees

working on the

project

4,547

Access pointsTotal contract value

with due date 2020

further monetization

from service

subscriptions

further monetization

from connectivity

subscriptions

Projects highlights during FY 2019

Further steps towards nation-wide digital transformation

The offer: Data bundle price is EGP 5 for the 1st

GB then each student has to

subscribe to one of WE’s existing data bundles

EGP 392mn

Recognized revenue

during FY 2019

36

EGP 1.1bn

Revenue by business unit (FY 2019)

Retail services & specifically data drive revenue growth

Home &

Consumer DomesticEnterprise

International

Carriers Affairs

International

Customers & Networks

37

FY 2019 performance:

Retail revenue grew 27% YoY, representing 55% of top line with data revenue growing 33% YoY.

Home & Consumer increased 30% YoY on the back of higher data revenue, which constituted 85% of the business

unit’s total growth.

Enterprise climbed 18% YoY, mainly driven by the growing demand for managed services and fixed voice revenue

growth.

Mobile revenue grew 61%, driving 20% of overall top line growth on a growing customer base and healthy ARPU.

Wholesale landed at EGP 11.5bn, stable YoY, as domestic revenue surged (+16% YoY), neutralizing the decline in

IC&N (-15% YoY) revenue due to the base effect of the Bharti deal signed in 2018.

The continuing demand for data from MNO customers and our successful bitstream products that support their fixed

broadband growth drove Domestic Wholesale growth.

ICA came in almost flat YoY, despite the appreciation of the EGP against the USD, due to higher international

incoming traffic.

4,868

4,424 4,383

1,128 1,136

2017 2018 2019 Q1 2019 Q1 2020

-10.0%

-0.9% +0.7%

5,662

8,064

10,474

2,401

3,131

2017 2018 2019 Q1 2019 Q1 2020

+85.0%

+29.9% +30.3%

2,627

3,215

3,809

750 786

2017 2018 2019 Q1 2019 Q1 2020

+45.0%

+18.5% +4.8%

3,304

3,571

4,155

1,309 1,248

2017 2018 2019 Q1 2019 Q1 2020

+25.8%

+16.4% -4.7%

2,106

3,496

2,984

498703

2017 2018 2019 Q1 2019 Q1 2020

+41.7%

-14.6% +41.1%

45%

11%

18%

16%

10%

Q1 2020

Home & Consumer Enterprise

Domestic International Carriers Affairs

International Customers & Networks

39%

12%

22%

19%

8%

Q1 2019

* EPS after appropriations

Historical 3 year income statement summary

Note: All financial figures reported are based on the consolidated financials under the Egyptian Accounting Standards

in EGP mn 2017 2018 2019Growth y/y

2018 2019

Revenue 18,567 22,771 25,805 23% 13%

Home & Consumer 5,662 8,064 10,474 42% 30%

Enterprise 2,627 3,215 3,809 22% 18%

Domestic Wholesale 3,304 3,571 4,155 8% 16%

International Carriers 4,868 4,424 4,383 -9% -1%

International Customers & Networks 2,106 3,496 2,984 66% -15%

Total employee cost (5,061) (5,216) (7,757) 3% 49%

Call costs (4,152) (4,295) (4,832) 3% 12%

COGS (excl. above expenses) (3,138) (5,371) (5,206) 71% -3%

S&D (excl. salaries, D&A) (533) (1,398) (1,499) 162% 7%

G&A (excl. salaries, D&A) (499) (615) (678) 23% 10%

EBITDA 5,184 5,876 5,834 13% -1%

Margin 28% 26% 23% (212 bps) (320 bps)

Other (income)/expenses (1,056) 147 321 114% 119%

Depreciation (1,841) (2,021) (2,908) 10% 44%

Amortization (264) (629) (697) 138% 11%

Operating profit 2,023 3,373 2,549 67% -24%

Margin 11% 15% 10% 391 bps (493 bps)

Income from investments 2,337 2,201 2,833 -6% 29%

Net finance (cost)/income (382) (288) 1,115 -25% 487%

Net interest (expense)/income (264) (1,024) (1,001) 288% -2%

Tax (659) (958) (1,091) 45% 14%

Net profit 3,052 3,297 4,399 8% 33%

Margin 16% 14% 17% (196 bps) 257 bps

EPS 1.38 1.50 2.10 9% 40%*

38

1.76

1.56

1.79 1.93

2.58

0.74

1.99

0.27

0.73

3.18

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Consolidated

Standalone

0.41

1.65

(0.11) 0.36

2.79

0.75

1.00

0.25 0.25 0.25

(0.5 0)

-

0.50

1.00

1.50

2.00

2.50

3.00

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

EPS

DPS

1.40

1.20

1.38 1.50

2.10

0.41

1.65

(0.11)

0.36

2.79

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Consolidated

Standalone

Dividend analysis

We aim to distribute a continuous stream of dividends, balancing distribution with

the reinvestment of our cash flows in capex, which we view as the pillar for growth

EPS after appropriations

(in EGP)

EPS before appropriations

(in EGP)

Note: All financial figures reported are based on consolidated & standalone financials under The Egyptian Accounting Standards.

Payout ratio

(%)

Dividend distribution on standalone financials (based on regulations)

(in EGP)

39

54%

83%

18% 17%12%

182%

60%

236%

69%

9%

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Consolidated

Standalone

3,159

4,731

7,336

8,499

12,720

5,294

…

26%

34%

40%37%

49%

0%

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

10 0%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Capex License Capex/sales

147

(2,603) (2,456)

(5,075)

(1,508)

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

1,597

4,338 4,649

3,496 2,991

1,704

1,258

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

4,249

5,199

2,609 3,312

6,088

8,028

9,665

5,294

1,420780 748 21% 24%

33%

35% 37%

0%

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

10 0%

-

2,000

4,000

6,000

8,000

10,000

12,000

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Capex License Capex/sales

Cash flow analysis

Cash capex

(in EGP mn)

Net cash from operating activities

(in EGP mn)

Note: All financial figures reported are based on consolidated financials under The Egyptian Accounting Standards.

FCFF

(in EGP mn)

In-service capex

(in EGP mn)

* Including the one-off settlement payment to Etisalat of EGP 919mn and the EGP 784mn representing the settlement of the

MENA cable loan

** Including dividends received from Vodafone of EGP 5.1bn

* Including the one-off settlement payment to Etisalat of EGP 919mn and the EGP 1.78bn for the acquisition of MENA

cable

** Including ERP cost of EGP 1.3bn

40

69%

20%

3%

7%

1% Access Network

Transmission

International cable

Customer care

Others

62

(97)

1,191

797 871

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

2,587 1,180 638

998

1,459

-389 -3,342

-7,293

-13,854 -16,452

-2,197 2,161 6,656 12,855 14,993

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Net debt

Cash Total debt

-0.6x

0.6x

1.3x

2.2x 2.1x

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Balance sheet highlights

FCFE

(EGP mn)

Net debt

(EGP mn)

Net debt/ EBITDA

(Based on annualized EBITDA)

Breakdown of capex in-service

* Normalizing EBITDA for ERP total cost of EGP 1.3bn.41

Our performance in context

Revenue Growth

YoY

EBITDA margin (%)

CAPEX / sales (%)

FY 2019

actual

13%

23%

In-service: 49%

Cash: 37%

Low double

digit

Mid to high 20s

In-service: 30%

FY 2019

adjusted

13%

28%

In-service: 49%

Cash: 37%

FY 2020

budget

* Normalizing EBITDA margin for the ERP total cost of EGP 1.3bn.

Q1 2020

actual

15%

33%

In-service: 11%

Cash: 37%

42

Thank you

Investor relations team

investor.relations@te.eg

Check our newly revamped website

ir.te.eg