GTH Investor presentation March 2017 =GN=...2017 Investor Presentation March 2017. 2 ... •Right...

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alTelecom

Holding2017 InvestorPresentation

March2017

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alTelecom

Holding2017

Disclaimer

This presentation is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy shares in Global Telecom Holding S.A.E. (the"Company"). Further, it does not constitute a recommendation by the Company or any other party to sell or buy shares in the Company or any other securities.

This presentation includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use offorward-looking terminology, including, without limitation, the terms "believes", "estimates", "anticipates", "expects", "intends", "plans", "goal", "target", "aim", "may", "will","would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. All statements other than statements of historical facts included inthis presentation, including, without limitation, those regarding the Company’s strategic priorities and objectives and the anticipated benefits therefrom, and prospects areforward-looking statements. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other factors which, if any one or more ofsuch risks, uncertainties or factors were to materialize, may cause the actual results, financial condition, performance, liquidity, dividend policy or achievements of the Company,or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which theCompany will operate in the future. Important factors that could cause the Company's actual results, performance or achievements to differ materially from those in theforward-looking statements include, among others, the prices of the Company's products and services, the actions of competitors, the availability of credit, governmentalregulation of the telecommunications industry in countries in which the Company operates, the effects of political uncertainty and economic conditions in the relevant areas inthe world, the impact of foreign currency rates, taxation, government investigations and/or unforeseen litigation, failure to meet expectations regarding operational andnetwork development and network investment, and failure to meet expectations regarding various strategic initiatives, including, but not limited to, the performancetransformation program and/or changes to the capital structure. Forward-looking statements should, therefore, be construed in light of such factors and undue reliance shouldnot be placed on forward-looking statements.

These forward-looking statements speak only as of the date of this presentation. The Company expressly disclaims any obligation or undertaking (except as required byapplicable law or regulatory obligation including under the rules of the Egyptian Exchange and the UK Listing Rules and the Disclosure and Transparency Rules of the FinancialConduct Authority), to release publicly any updates or revisions to any forward-looking statement, whether as a result of new information, future events or otherwise.

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GTH– establishedmarketpositioninhighlypopulatedcountries…

Pakistan38%

Algeria42%

Bangladesh20%

Algeria45%

Pakistan38%

Bangladesh17%

Pakistan43%

Algeria36%

Bangladesh21%

USD2.2billion

USD1.0billion

ServiceRevenueFY16

EBITDA FY16

OpFCF 1 FY16

USD0.9billion

1 OperatingfreecashflowdefinedasunderlyingEBITDA– Capex(excludinglicenses)3 Customermarketshare4 Source:data.worldbank.org

Algeria#1Marketposition3 (share- 36%)(3PlayerMarket)Demography4

• Population:40million• Populationbelow24years:45%Macro-economic4

• RealGDPgrowth:3.6%• GDP(PPP)percapita:USD14,310

Pakistan#1Marketposition1 (share- 38%)(4PlayerMarket)Demography4

• Population:190million(6thlargest)

• Populationbelow24years:54%Macro-economic4


Bangladesh#3Marketposition1 (share- 25%)(3PlayerMarket)Demography4

• Population:161million(8th largest)• Populationbelow24years:51%Macro-economic4


• ~ 400 million population• ~ 100 million customers• 50% below 24 years

…Similarmarketsandphasesofdevelopment

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Mobile-connectedsocietieswithhighgrowthpotential…

72% 73%

115%

PAK BGD ALG

421

254345

PAK BGD ALG

…traditional business still growing and appetite for

innovation

Source:Companydata,WCIS,Ciscoestimates,WorldBankGroup1 2016,basedonWCISdata2 BasedonCompanydata.Datausagecalculatedonactivecustomersinthelast3monthsasof30September20163 Penetrationcomputedassmartphoneconnectionsdividedbytotalmobileconnections4 2016,basedonCiscoestimates(monthlyusagedata)andcompanycalculations

MobilePenetration1 (%)

DataUsage2 (MB/User)

WesternEuropeAvg:121%

WesternEurope4Avg:4,041MB/User

MobileDataPenetration2 (%)

48% 50%40%

PAK BGD ALG

WesternEurope1Avg:86%

26%

12%

31%

PAK BGD ALG

WesternEuropeAvg:86%

Smartphonepenetration3 (%)

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Emergingmarketsataglance

CONCLUDEINTEGRATION,NETWORK

EXPANSIONANDDELIVERSYNERGIES

TURNAROUNDWITHGROWTHIN

SMARTPHONEANDDATAACCESS

NETWORKEXPANSIONANDDIGITALSTRATEGY

Pakistan Algeria Bangladesh

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Pakistan:fuellingmomentumasmarketleader

INTEGRATION NETWORKDEVELOPMENT DIGITALAGENDA

• Enhancingcustomerpropositionthroughnetworkdevelopment

• Focuson:

• Datacoverageincrease

• Networkmodernization

• Warid (#5)acquiredinJuly,2016

• 3GofferedtoWarid customersin30cities

• 4G/LTEofferedtoMobilinkcustomersin17cities

• On-netproducts:inthemarket

• January2017:rebrandto“Jazz”

• Synergies:68%run-rateachieved~PKR8.2billion(USD78million)

• GrowingMFSwithfocusontransactionsandwalletstop-ups

• JazzXlr8(IncubationCentre)- LargestIncubator/Acceleratorof

Pakistanlaunched- 30start-upstojointheprogram- First5start-upstorepresent

JazzXlr8atGSMA(4YFN)

…bankingtheunbanked,enhancingcustomerpropositionthroughnetwork,bringingsynergieswithintegration

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Algeria:fixingthebusiness

STRUCTURALISSUES NEWFRAMEWORK RENEWEDFOCUS

• Rightpartner(FNI– AlgeriaGovernment)

• SMPstatusliftedinQ32016• Heavyinvestmentintechnology• Majorinternaltransformation

• Legacyunder-investmentinnetwork&systems

• SignificantMarketPlayerstatus• AsymmetryinMTRs• Restrictionson3Groll-out• StagnantOrganization– Lossoftalents

• 2Gposition,3Gparity,4G/LTEleadership

• Datacentricpricing– FirstinMarket

• RefreshedBrand–Network/Emotion

• FocusonbothIndirect&DirectDistribution

• Newleadershipteam– Urgency• OrganizationRedesign–Lean/Agile

STAGNATION BACKTOBASICS GROWTH

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Bangladesh:gettingbackourpositioninthemarket…

ORGANIZATIONALTRANSFORMATION

NETWORKDEVELOPMENT

STABILIZINGMARKETPOSITION

• Focusonsubstantiallyimproving3Gnetwork

• RegionalNetworkandDistributionalignmentfocusedonROI

• Fiber transmission– LeasedCapacityModel

• ManagedservicesinFLMandCustomerService

• DesignedforSharedServices

• Movetodigitaltalentsandautomatingprocessinallareas

• Openplan,hot-deskingandrefreshedculture

• Closedthegapto#2by3pointsin2016

• Newspectrumisexpectedduring2017

• NationalIncubationcenterlaunched

• Indirectdistributionrefresh–Clustermode

…onthebackofnetworkinvestmentsanddigitalstrategy

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Strategy

Deliveringonstrategy

PerformanceTransform

ation

New

RevenuStreams

$$

$$

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4Q16FinancialHighlights

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4Q16financialhighlights

Servicerevenue(USDmillion)

736

339 44.1

- 2.2%organic1 YoY+ 7.2%reportedYoY

98.3Mobilecustomers(million)

UnderlyingEBITDA(USDmillion)

UnderlyingEBITDAmargin(%)

+ 12.8millionYoY²

+ 0.5%organic1 YoY+ 2.1%reportedYoY

- 5.6 p.p.YoY

1 Revenueorganicgrowtharenon-GAAPfinancialmeasuresthatexcludetheeffectofforeigncurrencytranslationandcertainitemssuchasliquidationsanddisposals²CustomersnumberincludesWarid customers

• Servicerevenuedeclinedorganically2.2%YoY dueto:

► Double-digitgrowthinPakistan

► WeakperformanceinAlgeriaandBangladesh

• Mobiledatarevenuesignificantorganicgrowthof75%YoY

• UnderlyingEBITDAwasorganicallystableasaresultof:

► StrongperformanceinPakistan

► OffsetbyadeclineinAlgeriaandBangladesh

• ContinuedstrongunderlingEBITDAmarginof44%andreportedEBITDAmarginof31%

• Continuedcustomergrowthof14%,with12millioncustomersaddedYoY duetostrongperformanceinPakistanandtheconsolidationofWarid

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10.9

15.413.5

40.5% 40.0% 34.9%

4Q15 3Q16 4Q16

4Q16Pakistan:doubledigitgrowthcontinued,integrationongoing

• Mergerintegrationexecutionaheadofschedule:► annual run-rate of PKR 8.2 billion (USD 78 million)

synergies already achieved

► Mobilink and Warid rebranded as “Jazz” in January 2017

• Doubledigitrevenuegrowth,supportedbyallrevenuestreams,resultinginrevenuemarketsharegain

• InQ42016mobiledatarevenueorganicgrowthof61.7%YoY;MFSrevenuegrowthof34.2%YoY

• InQ4UnderlyingEBITDAmargin1ofmergedentity,excludingtransformation/integrationcosts,of40.3%

• FY2016OCFmargin2of26%

• Firstdividenddeclaredin11years► Gross amount ~PKR 5 billion (~USD 50 million)

7.2

10.1

23.5% 16.6%

4Q15 4Q16

EBITDAANDEBITDAMARGIN(PKRBILLIONAND%)

CAPEXEXCL.LICENSESANDLTMCAPEX/REVENUE(PKRBILLIONAND%)

36.2 41.3

10.3 10.3

4Q15 4Q16

+42.4%YoY+14.0%YoYorganic



0.52.4 9.62.0

2.2 1.012.5

MOBILECUSTOMERS(MILLION)

46.5

25.3 28.4 29.0

7.8 7.7 7.7

4Q15 3Q16 4Q16


SERVICEREVENUE(PKRBILLION)

36.736.1 51.6

Warid contribution;Q42015totalfiguresarepro-forma,includingintercompanytransactionswithMobilinkOrganicYoYchangerepresentsstandaloneperformanceofMobilink1Q42016EBITDAnegativelyimpactedbyone-offsoftransformation/integrationcostsofPKR2.1billion;Q42015EBITDAnegativelyimpactedbyaone-offofPKR0.2billionrelatedtotransformationcosts

2 OperatingCashflowmargin=(UnderlyingEBITDA-Capexexcl.licenses)/Totalrevenue

13.28.9

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4Q16Algeria:continuedpressureonresults

• ServicerevenuecontinuedtodecreasedoubledigitYoY,notwithstandingstrongdatarevenue(+70%YoY)

• NewCEOonboardsince26January,leadingarenewedmanagementteamcommittedtotheturnaround

• Keyfocalpointsofthemid-termturnaround:► strengthening the organization, focus on commercial

► distribution, both direct and indirect

► keeping positive momentum in 4G/LTE roll-out, alreadycompleted in 20 willayas, keeping Djezzy ahead ofcompetition

• CustomerbaseincreasedQoQ

• UnderlyingEBITDAmargincontinuedtobeabove50%,asaresultofPerformanceTransformationprogram

• FY2016OCFmargin2of38%

17.3 14.9 13.954.3% 51.3% 50.9%

4Q15 3Q16 4Q16

7.36.2

15.3% 16.0%

4Q15 4Q16

31.2 28.9 26.9

4Q15 3Q16 4Q16

17.0 16.3

4Q15 4Q16

-4.2%YoY

-19.9%YoY-24.4%YoYunderlying1 -15.6%YoY

-13.7%YoY

1 Q42016EBITDAnegativelyimpactedbyone-offs,duetotransformationcosts,ofDZD0.2billion;Q42015EBITDAnegativelyimpactedbyone-offs,duetotransformationcosts,ofDZD1.3billion



EBITDAANDEBITDAMARGIN(DZDBILLIONAND%)

CAPEXEXCL.LICENSESANDLTMCAPEX/REVENUE(DZDBILLIONAND%

SERVICEREVENUE(DZD BILLION)

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4Q16Bangladesh:customergrowth inacompetitve market

• Servicerevenuedecreased2%YoY:► aggressive competition on price and offers, accelerated

after the SIM-verification and in-market consolidation

► additional supplementary duties introduced in H1 2016

► gap in 3G network especially in semi-rural and urban areas

• Sustainedstronggrowthindatarevenueof51%YoY

• Customergrewby1.4millionQoQ;excludingtheSIMre-verificationimpactof3.8millionSIMblocking,thecustomerbasein4Q16wouldhaveincreasedby~6%YoY

• UnderlyingEBITDAdeclinedasaresultofacceleratedcustomeracquisitionactivityduringthequarter

• 3Gcoveragereached59%ofpopulation;Banglalinkisaddressingthegapversuscompetitors,aimingatsubstantiallyimprovingthe3Gnetworkin2017

• FY2016OCFmargin2of24.3%

4.0

5.74.4

33.1%46.7% 36.4%

0.0

4Q15 3Q16 4Q16

3.3

5.1

22.2% 22.1%

4Q15 4Q16

11.8 12.0 11.6

4Q15 3Q16 4Q16

32.3 30.4

4Q15 4Q16

-5.9%YoY

+9.9%YoY-10.8%YoYUnderlying1 +56.4%

-2.0%YoY

1 Q42016EBITDAnegativelyimpactedbyone-offsduetotransformationofBDT0.8billion;Q42015EBITDAnegativelyimpactedbyone-offs,includingtransformationcosts,ofBDT1.8billion



EBITDAANDEBITDAMARGIN(BDTBILLIONAND%)

CAPEXEXCL.LICENSESANDLTMCAPEX/REVENUE(BDTBILLIONAND%

SERVICEREVENUE(BDTBILLION)

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Debtbyentity

Asat31December2016

Netdebt/underlying1 LTMEBITDA

Grossdebt/underlying1 LTMEBITDA

Weightedaverageinterestrate

1.5x 1.9xBridgeloanpro-forma:

2.0x

8.2%Bridgeloanpro-forma:

1.6x

Outstandingexternaldebt(USDmillion)

Typeofdebt

Entity Currency Loans Bonds Other TotalGTHFinanceBV USD - 1,200 - 1,200Pakistan PKR&USD 598 66 92 757Banglalink USD - 300 5 305Algeria DZD 340 - - 340

Total principal amount 938 1,566 97 2,602

1 UnderlyingEBITDAexcludesPTcostsin2016andsimverificationcostsin2015

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BalancedmaturityprofileAsat31December2016InUSDmillion

2017 2018 2019 2020 2021 2022 2023

Bangladesh

GTH

Algeria

Pakistan621

20 17

284 286

565

717

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Netdebtevolution

ND: Net debtΔ WC: Change in working capital

1,961

( 235)9 130 46 148 ( 69)

1,990

Pro-formaNDSeptember30th16

EBITDA ΔWC NetInterest Taxes Capex ForexandOthers NDDec.31th16

Asat31December2016InUSD’000

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4Q16incomestatement

• GainfromsaleofZimbabweofUSD21million

• ImprovedmainlyduetounrealizedFOREXgainontaxprovisionasaresultofthedepreciationofEGPvs.USD

• Moresupportprovidedtooperations,likenetworkswapinPakistan,networkmodernization,3Gand4G/LTEroll-outinAlgeriaand3GnetworkinBangladesh..

• Substantiallylowerimpairmentsonassetsin4Q16versus4Q15

• EBITDAdeclinewasrelatedtooperationalperformanceandprovisionofUSD66millionofIraqna litigation

USDmillions 4Q16 4Q15 ReportedYoY

Servicerevenue 736.5 687.2 7.2%

-Ofwhichmobiledatarevenue 87.1 50.3 73.2%

Otherrevenue 31.3 22.6 38.1%

TotalRevenue 767.8 709.8 8.2%

Totalexpense (533.2) (415.2) 28.4%

EBITDA 234.6 294.6 (20.4%)Depreciationandamortizationofpropertyandequipment (160.5) (155.3) 3.4%

Gains/(Loss)onsoldproperty,equipment,intangibles,goodwillandscrapping 1.2 (3.0) n.m

Impairmentlossfromassets (8.6) (65.9) (86.9%)

Technicalservicesexpense (9.9) (2.4) 303.1%

OtherOperatingGain/(Loss) 13.6 (14.1) n.m

OperatingProfit 70.3 53.9 30.6%FinancialExpense (65.5) (65.1) 0.7%

FinancialIncome 3.3 2.6 25.3%

ForeignExchangeGain/(Loss) 50.1 8.7 474.0%

ProfitBeforeTax 58.3 0.2 n.m

IncomeTax (23.1) 21.6 n.mProfitforthePeriod 35.2 21.8 61.3%

Attributableto:

TheOwnersoftheParent 7.3 (12.3) n.m

Non-controllinginterests 28.0 34.1 (18.1%)

ProfitforthePeriod 35.2 21.8 61.3%

EarningsPerShare 0.01 0.00 61.3%

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ForeignExchangeRatesAppliedtotheFinancialStatements

Averagerates Closingrates

4Q16 4Q15 YoY 4Q16 4Q15 YoY

Egyptianpound 14.5 7.9 84.4% 18.1 7.8 131.8%

AlgerianDinar 110.6 106.8 3.5% 110.4 107.1 3.1%

PakistanRupee 104.8 104.9 (0.2%) 104.4 104.7 -0.3%

BangladeshiTaka 78.6 78.5 0.2% 78.9 78.3 0.9%

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Furtherinformation

InvestorRelationsOlaTayel

CairoRegisteredOffice AmsterdamHeadOffice2005CNileCityTowers- NorthTower GustavMahlerlaan 314CornishElNileRamlet Beaulac 1082MEAmsterdamCairo11221,Egypt TheNetherlandsTel:+20224615120 E:[email protected]

Visitourwebsitewww.gtelecom.com

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