Investor Presentation June...

Investor Presentation June 2015

Investor Presentation © Global Telecom Holding S.A.E. 2014

This presentation contains forward-looking statements about Global Telecom Holding (“GTH”). Suchstatements are not historical facts and include expressions about confidence and strategies ofmanagement and expectations of management about new and existing programs, technology and marketconditions. Although GTH believes its expectations are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties. These statements may not beregarded as a representation that anticipated events will occur or that expected objectives will beachieved. The forward-looking statements in this presentation are only valid until the date of thisdocument and GTH does not undertake to update any forward-looking statement to reflect events orcircumstances after the date hereof or to reflect the occurrence of unanticipated events.

This presentation is not an offer to sell securities or the solicitation of an offer to buy securities, nor shallthere be any offer or sale of securities in any jurisdiction in which such offer or sale would be unlawfulprior to registration or qualification under the securities laws of such jurisdiction.

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Disclaimer


GTH serves a population of approximately 415 million

1. Figures from CIA Factbook 2014

Geographical Presence1

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ALGERIA Population: 38.8 millionGDP Growth: 4%GDP/Capita PPP: USD14,300Pop. Under 15 years: 28%

ZIMBABWEPopulation: 13.8 millionGDP Growth: 3.1%GDP/Capita PPP: USD2,000Pop. Under 15 years: 38%

PAKISTANPopulation: 196.2 millionGDP Growth: 4.1%GDP/Capita PPP: USD4,700Pop. Under 15 years: 33%

BANGLADESHPopulation: 166.3 millionGDP Growth: 6.2%GDP/Capita PPP: USD3,400Pop. Under 15 years: 32%


Algeria: Algeria: Djezzy remains a profitable market leader with significant mobile data potential and lowpenetration of broadband technologies

Pakistan: Mobilink leads the market and has great potential for revenue growth through mobile data, MFS and VAS

Bangladesh:Bangladesh:Banglalink is a leading operator with strong focus on increasing value share in a rapidly large and growing market with relatively low penetration level

Market Position

4


52

169 169

Bangladesh Algeria Pakistan

53%

75%

85%

Pakistan Bangladesh Algeria

7%

37%39%

Algeria Pakistan Bangladesh

Notes1. Mobile penetration is for the market, based on sim cards number2. Based on Company estimates 2014, where mobile data penetration = data users (number of sims with data subscribed tariff plans) / mobile customers

Mobile Data Penetration2 (%) Data Usage2 (MB / User)Mobile Penetration1 (%)

Western Europe

Avg: 133%

Western Europe

Avg: 66%

Significant upside in terms of mobile penetration & data usage


Attractive markets

1. CIA Factbook 20142. Market share as provided by the regulator as of 2014

Algeria Pakistan Bangladesh

Population1: 38.8 million

GDP/capita1: USD 14,300

Penetration: 85%

Market shares2

49%

27%

23% Djezzy

Mobilis

Ooredoo



Penetration: 53%

28%

26%18%

19%

9%Mobilink

Telenor

Ufone

Zong

Warid



Penetration2: 75%

Market shares2

26%

42%

21%

11% Banglalink

Grameenphone

Robi

Other (3)

Market shares2


Average mobile penetration(%)

Mobile customers(million)

EBITDA margin1

(%)

Service Revenue(USD million)

EBITDA(USD million)

Population covered(million)

415

Market leadership in fast growing emerging markets

74 89.0+3.6 million YoY

320 44.5-2.6 p.p. YoY

701-8% organic2 YoY

-19% reported YoY

-5% organic YoY

-15% reported YoY

as at 1Q15

1 EBITDA margin is EBITDA divided by total revenue; EBITDA and EBITDA margin are non-GAAP financial measures 2 Revenue and EBITDA organic growth are non-GAAP financial measures that exclude the effect of foreign currency translation and certain items such as liquidations and disposals


Launch of 3G services driving customer growth

34.136.7 36.0 35.9 33.5 34.5 34.4 33.7

29.8

16.6 16.8 17.0 17.6 17.6 17.5 18.2 18.4 18.7

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

27.0 28.526.7 25.7 26.0 26.3

24.225.5

24.0

36.3

37.1 37.4 37.638.2

38.8 38.7 38.5 38.2

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

10.110.0

10.0 10.210.9 11.0 11.3 11.3

27.128.1

28.829.4 29.8

30.230.8

31.8

2Q13 3Q13 4Q14 1Q14 2Q14 3Q14 4Q14 1Q15

• Mobile customer base grew 6% YoYto 18.7 million

• Clear leader in NPS with continued QoQ customer base growth

• Mobile customer base remained constant YoY to 38.2 million due to sim-verification process in the country

• Mobile customer base grew 8% YoYto 31.8 million

• Supported by 3G services, attractive tariff plans and other service offerings

In LC billions, if not stated otherwise

Bangladesh

Revenue and Customers

Algeria


Pakistan



Bangladesh

EBITDA & EBITDA Margin

Launch of 3G services driving customer growth-Cont’d

Algeria


Pakistan


20.2 22.021.0 21.0

19.0 18.8 18.1 16.8

15.759.2% 60.1%

57.2% 58.3% 57.6%54.5%

52.5%49.8%

52.3%

1Q132Q133Q134Q141Q142Q143Q144Q141Q15

11.512.3

11.5

9.610.0 10.2

8.5

10.110.4

42.3% 43.0% 43.1%

37.2%39.5% 38.9%

34.9%

41.5% 41.5%

1Q132Q133Q134Q141Q142Q143Q144Q141Q15

3.83.7 3.6

3.4

4.04.2

4.44.6 4.6

41.3%

37.2% 36.3%33.7%

37.4% 38.2%39.7%

40.8%40.6%

1Q132Q133Q134Q141Q142Q143Q144Q141Q15

• EBITDA decreased 18% YoY, negatively impacted by revenue decline and higher marketing costs associated to the rebranding campaign

• EBITDA increased by 2% YoY and EBITDA Margin to 41.5% excluding SIM re-verification costs

• EBITDA increased 21% YoY, driven by the growth in revenue, and OPEX control initiatives, in particular HR and maintenance cost optimization.

In LC billions, if not stated otherwise


Algeria

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Algeria: Transformation to take 12 to 18 months

• Market leader in very attractive growth market, with a strong local partner

• Strengthening local management team

• Clear leader in NPS with continued QoQ customer base growth

• EBITDA decreased due to revenue decline and higher marketing costs

• Continued roll out of 3G, now launched in 25 regions

• Results expected to remain under pressure in 2015

19.216.8 15.7

57.4%

49.8% 52.3%

1Q14 4Q14 1Q15

33.4 33.5 29.8

1Q14 4Q14 1Q15

4.74.2

14% 14%

1Q14 1Q15

Service revenue

-11 % YoY

CAPEX and CAPEX/revenue

-10% YoY

Mobile customers (million)

17.618.7

1Q14 1Q15

+6% YoY

–18% YoY

DZD BILLION, UNLESS STATED OTHERWISE

EBITDA andEBITDA margin

1 NPS (Net Promoter Score) is the methodology Group uses to measure customer satisfaction


Pakistan

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Pakistan: Operational improvements

• 2G network modernization completed; continued investment in mobile data network

• Revenue pressure due to simplified VAS charging and SIM re-verification

• Strong mobile data revenue and mobile financial services growth YoY

• Continued improvements in NPS, maintained leading customer market share

• Underlying EBITDA margin of 41.5%, benefiting from power cost savings

10.210.1 10.4

39.5% 41.5% 41.5%

1Q14 4Q14 1Q15

24.924.3 24.0

1Q14 4Q14 1Q15

5.5

2.621%

10%

1Q14 1Q15

PKR BILLION, UNLESS STATED OTHERWISE

Service revenue

–4 % YoY


-53% YoY


38.2 38.2

1Q14 1Q15

+0% YoY

+2% YoY

= SIM re-verification costs of ~ PKR 0.7 bln

EBITDA andEBITDA margin1

1 In 1Q15 reported EBITDA margin was 38.5% as reported EBITDA includes SIM re-verification costs of ~ PKR 0.7 bn; reported EBITDA was PKR 9.7 bn, a decline of 5% YoY


Bangladesh

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Bangladesh: Continued double digit growth

• Continued customer and revenuemarket share gains

• Continued double digit revenue growth YoY despite unstable macro environment

• EBITDA increased 21% YoY driven by revenue growth and cost efficiencies

• Banglalink maintained its leading NPS, continued improvement in churn

• Banglalink had strong growth in mobile data usage

• CAPEX impacted by 48 days of strikes

3.8

4.6 4.6

36.9%40.8% 40.6%

1Q14 4Q14 1Q15

10.211.2 11.3

1Q14 4Q14 1Q15

2.1

0.920%

8%

1Q14 1Q15

BDT BILLION, UNLESS STATED OTHERWISE

Service revenue

+10 % YoY


-55% YoY


29.431.8

1Q14 1Q15

+8% YoY

+21% YoY

EBITDA andEBITDA margin

Appendix


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1Q15 Financial highlights

Service revenue(USD million)

701

Mobile customers(million)

89

EBITDA(USD million)

EBITDA margin1

(%)

320 44.5

- 5% organic2 YoY

- 15% reported YoY+ 3.6 million YoY

- 8% organic2 YoY

- 19% reported YoY

- 2.6 p.p. reported YoY

• Customer base grew 4% YoY to reach 89 million

• Revenue organic decline due to:► 3G gap in Algeria► Negative impact from simplified

charging of VAS and SIM re-verification activities in Pakistan

► Partially offset by double digit growth in Bangladesh

• EBITDA organic decline mainly due to:

► Lower revenue► Higher marketing costs in Algeria ► SIM re-verification costs in Pakistan

• Continued strong EBITDA margin of 44.5%

1 EBITDA margin is EBITDA divided by total revenue; EBITDA and EBITDA margin are non-GAAP financial measures – reconciliations are included in the Appendix2 Revenue and EBITDA organic growth are non-GAAP financial measures that exclude the effect of foreign currency translation and certain items such as liquidations and disposals


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1Q15 Income Statement

USD million 1Q15 1Q14 Change

Service revenue 700.6 823.2 (15%)

Other revenue 18.3 15.7

EBITDA 320.1 395.3 (19%)

Depreciation and amortization (193.3) (186.8)

Gains/(losses) on sold PP&E and impairments (2.4) 1.1

Operating income 124.3 209.6 (40%)

Net financial expense sand income (103.8) (127.5)

Foreign exchange gain / (loss) and other1 (30.9) 19.2

Profit before tax (10.4) 101.4 n.m.

Income tax (44.3) (58.6)

Profit(loss) for the period (54.7) 42.8

Net income attributable to shareholders2 (69.8) 38.1 n.m.

Minority interest 15.1 4.7

• Organic decline 8%

• Organic decline in service revenue of 5%

• Increase in amortization of the 3G license in Pakistan and of the software license in Algeria

• Decreased due to repayment of shareholder loan to VimpelCom

• Mainly due to the depreciation of Algerian Dinar and USD 6 mln write-off of investment in Zimbabwe following the cancellation of the license by the regulator in April 2015

• Income tax decreased due to lower profits

• Change in minority interest as a result of Algeria transaction

• Loss on sale of PP&E in Pakistan due to the disposal in Pakistan following the network modernization

1 other non-operating gain/ (loss)2 Net income attributable to GTH shareholders


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1Q15 Cash flow statement

USD million 1Q15 1Q14

Profit before tax (10.4) 101.4

Adjustment to reconcile net profit to cash flows from

operating activities(835.6) 288.6

Net interest paid and received (52.5) (19.1)

Income tax paid (258.9) (68.9)

Net cash from operating activities (1,157.6) 301.9

Proceeds from disposal of assets 1.6 6.1

Purchase of property, plant and equipment and intangible

assets(132.1) (204.9)

Inflows/(outflows) from financial assets (16.5) -

Net cash from investing activities (147.1) (198.8)

Gross proceeds from borrowings 822.7 417.6

Repayment of borrowings (4,176.8) (396.8)

Dividends paid to non-controlling interests (57.3) -

Proceeds from sale of non-controlling interest input 2,325.2 -

Net cash from financing activities (1,086.2) 20.9

Net Increase in cash and cash equivalents (2,390.8) 123.9

• Movement in financial assets outflow amounted to USD 16.5 million compared to nil mainly due to Mobilink’s investment made in term deposit receipts

• Income tax paid increased due to the withholding tax paid on OTA dividends

• Paid of the interest on shareholder loan to VimpelCom in January 2015

• Net cash proceeds from the Algeria closing transaction

• Payment of USD 1.1 bln Bank of Algeria fine as part of Algeria closing in 1Q15

• Decrease YoY due to depreciation of Dinar against the USD and modernization projects completed in 2014

In 1Q15:► Draw down of loan facility in Algeria for USD 0.6 bn

► Repaid VimpelCom shareholder loan of USD 3.8 bn

► Draw down and dept repayment of USD 0.3 bn in Banglalink


Debt by Entity

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Debt Profile

As at 31 March 2015, in USD million

Outstanding debt Type of debt

Entity Loans Bonds Other Total

GTH Holding 973 - 12 985

Pakistan 365 19 2 385

Banglalink 142 300 1 443

Algeria 512 - - 512

Total at principal amount 1,992 319 16 2,327

Interest accrued & arrangement fees 41 2 - 43

Total gross debt 2,033 321 16 2,370


For your inquiries, please contact:

Ola TayelInvestor Relations Manager

E: [email protected]: +202 2461 5120F: +202 2461 5055/54W: www.gtelecom.com

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