Etisalat Group1Q 2016 Results Presentation

26 April 2016

Emirates Telecommunications Corporation and its subsidiaries (“Etisalat” or the “Company”) have prepared this presentation (“Presentation”) in good faith, however, no warranty or representation, express or implied is made as to the adequacy, correctness, completeness or accuracy of any numbers, statements, opinions or estimates, or other information contained in this Presentation.

The information contained in this Presentation is an overview, and should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary.

Where this Presentation contains summaries of documents, those summaries should not be relied upon and the actual documentation must be referred to for its full effect.

This Presentation includes certain “forward-looking statements”. Such forward looking statements are not guarantees of future performance and involve risks of uncertainties. Actual results may differ materially from these forward looking statements.

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Disclaimer

1. Business Overview

Saleh Abdulla AlabdooliChief Executive OfficerEtisalat Group

Etisalat Group Financial Highlights

4

AED Million

Revenue

EBITDA

EBITDA Margin

Net profit

Net profit Margin

Capex

Capex/Revenue

Low single digit revenue growth despite currency depreciation in international markets

Stable EBITDA margin at 50%

Net profit decline due to forex losses

Higher capex spend attributed to international operations

Q1 2016 GrowthYoY%

12,853 +1%

6,424 -2%

50% -1pp

2,001 -8%

16% -2pp

1,639 +29%

13% +3PP

(1) Financial figures are restated to exclude the impact of discontinued operations

1Q2016 Highlights

5

Q1 2016 Highlights

Financial Highlights

Organic revenue growth in-line with guidance

EBITDA margin at 50% level

Higher capex spend driven by license acquisition

Domestic Operations

Continued solid trends in subscribers acquisition

Positive revenue growth

Continued to invest in network quality and new technology

InternationalOperations

Improved performance of the Int’l operations weakened by currency devaluation

Stable performance in Maroc Telecom Group

Strong performance in Egypt

Pakistan remains a challenging market

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Progressing towards 2016 Priorities

Portfolio Optimisation

Cost Improvement

Leadership position

Network

Digital / ICT

Cash flow

• On track to Optimise international portfolio

• Progress on improving cost efficiency • Further cost savings to be captured before year-end

• Improved commercial execution• Enhancing consumer offerings• Leveraging high network quality

• Delivering a differentiated network experience through continued investment in coverage and speed

• Network investment to support growth opportunities

• Seize new business opportunities, leveraging faster mobile and fixed-line communications networks

• Suitable Digital business model for corporate customers

• Improvement in operating cash flow driven by profitability and disciplined investments

2. Financial Overview

Serkan OkandanChief Financial OfficerEtisalat Group

61%

24% 6%6%

3%

57%

24%9%

8%

2%

Etisalat Group Financial Highlights

8(1) Financial figures are restated to exclude the impact of discontinued operations (Zantel & Canar)

Revenue Breakdown 1Q 2016 (AED m) EBITDA Breakdown 1Q 2016 (AED m)

UAE +1%

MT Group +7%

Egypt +9%

Pakistan -6%

UAE -4%

MT Group +2%

Egypt +8%

Pakistan -2%

YoY Growth YoY Growth

+1% -2%

12.9bn

6.4bn

(LC +16%)

(LC -3%)

(LC +14)

(LC +1%)

Represents others

(LC +10%) (LC +5)

Int’l Operations Financial Highlights 1Q 2016

9(1) Financial figures are restated to exclude the impact of discontinued operations

Revenue (AED m)/EBITDA (AED m) /EBITDA Margin (%)

YoY Growthin AEDMaroc Telecom Group

Revenue +7%3,119

EBITDA +2%1,571

EBITDA Margin -3pp50%

Etisalat Misr

Pakistan

Revenue -6%1,028

EBITDA -2%347

EBITDA Margin +1pp34%

1Q 2016

YoYGrowth in AED1Q 2016

Revenue & EBITDA (AED m) /EBITDA Margin (%) / YoY Growth %

Growth in MAD

-3%

+1%

+1pp

YoYgrowth in

PKR

Revenue +9%1,165

EBITDA +8%411

EBITDA Margin 0pp35%

YoYGrowth in AED1Q 2016

+16%

+14%

0pp

YoYgrowth in

EGP

+10%

+5%

-3pp5,287

5,489 5,480

2,319 2,2072,364

Q1'15 Q4'15 Q1'16

Revenue EBITDA

44%40%

43%

57%

21%

19%

UAE57%

Int'l43%

MT57%

Egypt

21%

Pakistan19%

Others3%

Domestic vs. Int’l

12,726 12,853 69

198 95

67 169

Q1'15 UAE MT Group Egypt Pakistan Others Q1'16

Group Revenue

10Note: “Others revenues” consist of domestic non-telecom operations, other international operations, management fees, etc.

In Q1’16 consolidated revenue increased Y/Y by 1% attributed to UAE, MT Group and Egypt operations

Revenues from international consolidated operations increased by 4%, resulting in 43% contribution to Group revenues, an improvement of 2 points compared to Q1’15

― Growth in MT Group driven by int’l operations

― Revenue growth in Egypt despite currency devaluation

― Revenue growth in Pakistan continued negatively impacted by increased competition in international and mobile revenues

Highlights

Revenue (AED m) and YoY growth (%) Sources of Revenue growth – Q1’16 vs Q1’15 (AED m)

Revenue by Cluster (Q1’16)

International

12,726 12,596 12,853

30%

-3%1%

Q1'15 Q4'15 Q1'16

Revenue YoY growth %

MT66%

Egypt17%

Pakistan15%

Others2%

Group EBITDA

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In Q1’16 Consolidated EBITDA decreased Y/Y by 2% to AED 6.4 bndue to higher cost of sales, regulatory charges and one-off provisions

EBITDA in the UAE negatively impacted by higher cost of sales and network costs.

EBITDA of consolidated international operations increased Y/Y by 2%, resulting in 37% contribution to Group EBITDA, an improvement of 2 points compared to Q1’15

― Positive contribution from Maroc Telecom Group due to int’l subsidiaries

― Positive contribution from Egypt due to higher revenue

― Pakistan contribution impacted by currency devaluation while grew in local currency

6,530 6,478 6,424

51% 51% 50%

1Q'15 Q4'15 1Q'16EBITDA EBITDA Margin

Highlights

EBITDA (AED m) & EBITDA Margin Sources of EBITDA growth – Q1’16 vs Q1’15 (AED m)

EBITDA by Cluster (Q1’16)

Domestic vs. Int’l International

6,530 6,424

164

24 29

7

11

Q1'15 UAE MT Group Egypt Pakistan Others Q1'16

Note: “Others EBITDA” consist of domestic non-telecom operations, other international operations, management fees, etc.

UAE61%

Int'l37%

Others2%

Group CAPEX

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1,266

4,908

1,639

10%

39%

13%

1Q'15 Q4'15 1Q'16

CAPEX CAPEX/Revenue

CAPEX (AED m) & CAPEX/Revenue Ratio (%)

In Q1’16 Consolidated Capex increased Y/Y by 29% resulting

in Capex/ Revenue ratio of 13%. This increase was driven by

international operations

Lower capital spend in the UAE

Capital expenditure in international operations increased by

87% and contributed 70% of consolidated Group Capex

― License acquisition in Ivory Coast

― Higher capex spending in Pakistan

HighlightsCAPEX by Cluster (Q1’16)

Domestic vs. Int’l International

14%

Sources of Capex growth – Q1’16 vs Q1’15 (AED m)

35%

10%

1,266

1,639

193

467

15

77 37

Q1'15 UAE MT Group Egypt Pakistan Others Q1'16

MT68%

Egypt13%

Pakistan18%

Others1%

UAE26%

Int'l70%

Others4%

Note: “Others Capex” consist of domestic non-telecom operations and other international operations

Net cash position (AED m) Mar’15 Mar’16

Operating 4,255 5,096

Investing (1,175) (1,737)

Financing (25) (243)

Net change in cash 3,054 3,116

Effect of FX rate changes 556 206

Reclassified as held for sales (6) (69)

Ending cash balance 22,148 24,676

Group Balance Sheet & Cash Flows

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Balance Sheet (AED m) Dec-15 Mar-16

Cash & Cash Equivalent (1) 21,422 24,676

Total Assets 128,265 132,139

Total Debt (1) 22,080 22,050

Net Cash / (Debt) (658) 2,626

Total Equity 59,375 57,573

Borrowings (1) by Operation Q1 2016 (AED m)

(1) Balances as of 31 December 2015 & March 2016 excludes discontinued operations

Debt (1) by Source Q1 2016 (AED m)

15,503

3,370 1,961

1,216

Group MT Group Egypt Pakistan

14,943

6,459

303 345

Bonds Bank Borrowings Vendor Financing Others

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Country by Country Financial Review

UAE: Maintained bottom-line growth

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Q1’15 Q4’15 Q1’16QoQ

GrowthYoY

Growth

Subs(1) (m) 11.4 11.6 12.0 +3% +6%

Revenue (AED m) 7,221 6,906 7,290 +6% +1%

EBITDA (AED m) 4,060 3,886 3,896 0% -4%

EBITDA Margin 56% 56% 53% -3pp -3pp

Net Profit 1,807 1,828 1,885 +3% +4%

Net Profit Margin 25% 26% 26% -1pp +1pp

CAPEX 622 2,685 428 -84% -31%

CAPEX/Revenue 9% 39% 6% -33pp -3pp

Subscriber growth Y/Y driven by mobile and eLife segments

Revenue growth Y/Y impacted by lower handset sales

Revenue growth Y/Y attributed to growth in mobile and fixed segments driven by higher data and growing subscriber base

EBITDA level weakening on higher interconnection and roaming costs, higher special project and G&A expenses

Net profit improvement Y/Y and Q/Q due to lower royalty charges partially diluted by higher depreciation expenses

Lower capital spending focused on network maintenance

(1) Subscriber numbers calculated as aggregate number of GSM, fixed, fixed broadband and eLife lines generating revenue during the last 90 days.

Highlights

1.61 1.77 1.84

7.77 7.91 8.23

114 110110

Q1'15 Q4'15 Q1'16

Postpaid Prepaid Blended ARPU

UAE: Consistent subscribers growth in mobile and eLifesegments with solid trends in postpaid segment

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0.96 0.87 0.84

132122

136

Q1'15 Q4'15 Q1'16

Fixed ARPL

(1) Mobile ARPU (“Average Revenue Per User”) calculated as total mobile voice, data and roaming revenues divided by the average mobile subscribers.(2) ARPL (“Average Revenue Per Line”) calculated as fixed line revenues divided by the average fixed subscribers.(3) Fixed broadband subscriber numbers calculated as total of residential DSL (Al-Shamil), corporate DSL (Business One) and E-Life subscribers.

Mobile Subs (m) & ARPU(1) (AED)

Fixed Broadband(3) Subs (m)

Fixed Subs (m) & ARPL(2) (AED)

eLife Subs – Double & Triple-Play (m)

0.80 0.87 0.89

383 407 389

Q1'15 Q4'15 Q1'16

E-Life (2P & 3P) ARPL

1.01 1.06 1.07

495 498 489

Q1'15 Q4'15 Q1'16

Fixed BB ARPL

Maroc Telecom: Growth driven by int’l subsidiariesMorocco, Benin, Burkina Faso, CAR, CDI, Gabon, Mali, Mauritania and Togo

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Subscribers (m) Revenue (AED m) (1) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%)

51.6 50.8 53.1

Q1'15 Q4'15 Q1'16

2,921 3,069 3,119

53%48% 50%

Q1'15 Q4'15 Q1'16

Revenue EBITDA %

Domestic vs. Int’l

Revenue Breakdown Q1’16

Int’l

313

1,497

779

11%

47%

25%

Q1'15 Q4'15 Q1'16

CAPEX CAPEX/Revenue

14%

Domestic vs. Int’l

Capex Breakdown Q1’16

Int’l

31%

Morocco55%

Int'l42%

Others-3%

Historical subsidiaries

63%

New subsidiaries

37% Morocco24%

Int'l

76%

Historical subsidiaries

31%

New subsidiaries

69%

168

340

153

16%27%

13%

Q1'15 Q4'15 Q1'16

CAPEX CAPEX/Revenue

Egypt: Double digit growth in revenue and EBITDA in local currency

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Total Subscribers (1) (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%)

1,070

1,246 1,165

36%32%

35%

Q1'15 Q4'15 Q1'16

Revenue EBITDA %

Strong revenue growth Y/Y despite impacted by currency devaluation

― Maintained strong revenue growth momentum in local currency at 16% level

Revenue growth is mainly attributed to continued upward trend in data revenues and higher voice contribution

EBITDA margin impacted by one-off item related to interconnection agreement with another mobile operator

Capex spending focused on network expansion

Highlights

96 94 94

23% 24% 24%

Q1'15 Q4'15 Q1'16

Subscribers Market Share

(1) Subscribers and market share data as per statistic published by the Ministry of Information and Technology

25.8

24.0 24.9

Q1'15 Q4'15 Q1'16

1,094

991 1,028

32%28%

34%

Q1'15 Q4'15 Q1'16

Revenue EBITDA %

135

362

212

12%

37%

21%

Q1'15 Q4'15 Q1'16

CAPEX CAPEX/Revenue

Pakistan: Subscriber growth amidst intense competition

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Subscribers (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%)

Subscriber growth Q/Q confirmed for the two consecutive quarters

― Subscriber growth Y/Y impacted by regulatory mandated biometric verification measures

Revenue growth Y/Y impacted by subscriber loss in mobile segment, price competition in international and mobile

segments

EBITDA margin improvement as a results of cost optimization initiatives

Higher capex spending with intensity ratio of 21%

Highlights

22.2 22.2 21.8

Q1'15 Q4'15 Q1'16

1,040 1,106 1,083

16%

32%

14%

Q1'15 Q4'15 Q1'16

Revenue EBITDA %

140

395

47 14%

36%

4%

Q1'15 Q4'15 Q1'16

CAPEX CAPEX/Revenue

Nigeria: Growth impacted by challenging regulatory and macro economic environments

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Subscribers (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%)

Subscriber growth in Q1 is impacted by subscriber disconnection in compliance with the regulatory mandatedregistration process

Revenue growth Y/Y in local currency of 9% driven by strong performance in data and digital services

EBITDA in absolute term is flat in local currency due to higher interconnection and termination costs, rental charges, and network costs; resulting in lower EBITDA margin

Lower capex spend Y/Y mostly due to timing of capitalisation of ongoing projects

Highlights

24%

2016 Actual Against Guidance: Confident in delivering the full year management guidance

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Revenue Growth %

EBITDA Margin%

CAPEX / Revenue %

Stable

~ 48% - 50%

Financial KPI

Guidance 2016In AED

Low single digits

~ 18%

Guidance 2016Constant

Currencies (1)

+1%

13%

ActualQ1 2016In AED

+3%

Actual Q1 2016Constant

Currencies

50%

(1) Constant currency: Financial results assuming constant foreign currency exchange rates used for translation based on the rates in effect for thecomparable prior-year period. In order to compute our constant currency results, we multiple or divide, as appropriate, our current AED results by the current year monthly average foreign exchange rates and then multiply or divide, as appropriate, those amounts by the prior year monthly average foreign exchange rates.

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Etisalat Group Investor RelationsEmail: ir@etisalat.ae

Website: www.etisalat.com/en/ir/index.jspr