33
CFA Research Challenge October 2018
CFA Research Challenge
October 2018
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.
2
Content
Company overview 4
Our strategy in context 17
Financial highlights 27
3
Company overview
Company snapshotHeritage transformed
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 the 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
Govern
ment,
80%
Free
float, …
USA
26%
Egypt
25%GCC
21%
Europe
13%
RoW
7%S.
Africa
8%
Institut
ional,
16%
Retail,
4%
Ownership: Highly diversified solid institutional shareholder base
Market Cap of USD 1.2bn | ETEL EY/ ETEL.CA
5
Free float composition Breakdown of institutions
9.75% 9.25% 9.75%11.25%
12.25%
15.25%
17.25%
19.25%18.25%
17.25%
7.1 7.7 8.08.9 8.9
14.3
18.2 18.1 17.7 17.8 17.7 17.9
2014 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
9.90%8.76% 9.1%
7.7% 7.2% 8.1%5.5%
7.2% 8.4%
12.4%13.9%
25.9%
32.3% 31.9%33.3%
19.9%
11.6%10.9%
Macro indicatorsTelecom Egypt is a beneficiary of macro-turnaround
Real GDP growth (%) USD to EGP
CBE discount rate Core inflation (YoY)
Source: IMF Source: Central Bank of Egypt
Source: Central Bank of Egypt Source: Central Bank of Egypt
6
2.9
4.4 4.3 4.2
5.25.5
5.8
2014 2015 2016 2017 2018e 2019f 2020f
37%
12%19%
22%
9%
31%
14%18%
26%
11%Home & Consumer
Enterprise Solutions
Domestic Wholesale
Int'l Carriers
Int'l Customers & Networks
A growing businessMomentum continues on data growth boosted by infrastructure investment
Our services
Providing total telecom services
• in the retail space:
Fixed voice & data
Mobile voice & data
to consumer & corporate customers
• in the wholesale space:
International voice services
Transmission & infrastructure leasing
International connectivity
4.6 5.0 5.5 6.6 8.3
3.8 5.0
6.5 7.1 6.77.3
10.3
5.05.1
2013 2014 2015 2016 2017 H1 2017 H1 2018
Retail Wholesale
Revenue growth momentum beats global telecom sector average…
… with the aim of growing the retail contribution to total revenue
FY 2017 H1 2018
Retail contribution
45% 49%
7
Revenue dynamics of TE’s business unitsRetail revenue driven by growth in data customers’ & usage
Retail
Home & Consumer: increased demand on mobile & data
services represented in customer & usage growth
Enterprise: demand for reliable connectivity, but also
telecom solutions to support operations. Also, includes
agreements with New Urban Communities Authority
(NUCA) to connect new homes along Egypt’s horizontal
expansion
8
Fixed-line voice & data offering
Mobile voice & data offering
103.5 108.1
112.4 117.1
121.6 125.9 129.9 133.8
30.0 32.4 36.0 42.2
49.9 59.2
65.0 72.3
2015 2016 2017 2018 2019 2020 2021 2022
SIMs Data enabled
+15%
Retail market overviewMobile voice market is mature, but data market underpenetrated
Source: IMF, ITU, MCIT, Operators’ Releases, TE Intelligence
Finland
Denmark
Australia
Indonesia
Korea Hong Kong
KSA
MalaysiaBrazil
UK
Oman
Spain
Italy
Gabon
Germany
Thailand
Russia
Tunisia
Poland
Tanzania
SA
Portugal
Turkey
Egypt
Algeria
Jordan
Morocco
Bangl.
Pakistan
Libya
Senegal
KenyaMali
Ivory Coast
0%
20%
40%
60%
80%
100%
0 10 20 30 40 50 60 70
HH
FB
B p
en
etr
atio
n (
%)
GDP (PPP) per capita ('000 USD)
SingaporeFinland
Bahrain
Kuwait
DenmarkEstonia
Indonesia
Liberia
Hong Kong
KSA
Rwanda
UAE
MalaysiaBrazil
UK
Oman
Spain
Italy
Gabon
Germany
Thailand
Russia
Tunisia
Poland
Tanzania
SA PortugalTurkey
Egypt
Algeria
Jordan
Morocco
Sudan
Ghana
Iraq
Ireland
SenegalKenya
Mali
Ivory Coast
0%
20%
40%
60%
80%
100%
120%
140%
160%
0 10 20 30 40 50 60 70 80
Mo
bile
data
pen
etr
atio
n (
%)
GDP (PPP) per capita ('000 USD)
HH fixed broadband penetration vs. peersMobile data penetration vs. peers
FinlandGhana
Kuwait
Denmark
Tanzania
Indonesia
Korea
Nigeria
KSA
Uganda
UAE
Malaysia
Brazil UK
Oman
Spain
ItalyGabon
Germany
Thailand
Russia
Tunisia
Poland
Lebanon
SA
Portugal
Turkey
Egypt
Algeria
Jordan
Morocco
SudanBangladesh
Sierra Leone
Iraq
Libya
SenegalKenya
MaliIvory C.
50%
70%
90%
110%
130%
150%
170%
190%
0 10 20 30 40 50 60 70
Pen
etr
atio
n (
%)
GDP (PPP) per capita ('000 USD)
SIM penetration vs. peers
+4%
Mobile subscriptions forecast Fixed subscriptions forecast
6.6 6.57.0
7.88.7
9.7
10.8
12.0
3.74.4
5.2
6.47.3
8.49.4
10.6
2015 2016 2017 2018 2019 2020 2021 2022
Voice Broadband+11%
+15%
9
26%
11%
19%
29%
3%
12%Illiterate
Literate
Primary
Secondary
High school
University
degree
Demographic indicatorsYoung population to continue to drive growth
Illiteracy ↓ from 30% in 2016
74% of population is literate
13.2%
13.0%
12.8%12.7%
12.0%
2012/13 2013/14 2014/15 2015/16 2016/17
Population (mn) Age distribution (% of population)
Educational attainment (% of population) Unemployment rate (%)
Source: CAPMAS 2017 census Source: 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 years85.9
87.7
92.2
94.2
96.2
2013 2014 2015 2016 2017
10
2,631 3,029
3,791
4,439
5,197
5,824
1,667 1,978
2,809
3,382
4,070
4,643
964 1,051 982 1,057 1,127 1,181
2013 2014 2015 2016 2017 H1 2018
TE
Others
2,799 2,560 2,408 2,244 2,462 1,149 1,509
1,569 1,941 2,625 3,631
5,049
2,300
3,263
261 508
440
741
779
328
204
2013 2014 2015 2016 2017 H1 2017 H1 2018
OtherFixed DataFixed Voice
182 403
2,175
3,597
7,088
11,072
2012 2013 2014 2015 2016 2017
Fixed-line marketOur investment in fiber is key to data growth
Fiber access network capacity ( In 000’ homes)
ADSL subscribers ( In 000’s)
Retail revenue growth driven by data( n EGP mn)
Voice and data household penetration
8%9%
21%
25%
11
32%31.9%
29.2% 28.7% 27.7%30.0% 30.8%
12.4% 13.9%16.6%
19.0%21.8% 24.2%
2013 2014 2015 2016 2017 H1 2018
Fixed lineADSL
41,912 39,549 38,725 39,622 44,082 41,470
34,747 33,717 33,056 33,883 34,117 31,173
23,047 22,050 22,236 33,900
34,200 31,600
2,300 3,305
2013 2014 2015 2016 2017 H1 2018
Mobile market subscribers ( In 000’s)
Mobile voice and data penetration (In mn)
Mobile marketOur competitive edge in infrastructure will help us capitalize on the underpenetrated data market
Mobile data market subscribers (In mn)
Source: MCIT
* Etisalat restated is Customer base higher starting FY 2016
0.4
1.6
2.32.9
3.3
Sep. 2017 Nov. 2017 Dec. 2017 Mar. 2018 Jun-18
TE's mobile subscribers since launch( In mn )
12
116%109%
104% 106% 107% 105%
21%29% 33% 35% 34% 37%
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 H1 2018
Voice penetrationData penetration
14,500 21,770
26,300 28,650 32,760 32,810 3,900
4,050
3,820 3,280
3,270 3,480
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 H1 2018
USBMobile data
Source: MCIT
Revenue dynamics of TE’s business units (cont’d)Domestic and ICN revenue are a direct play on the growing data demand by telecom operators in Egypt and internationally
Wholesale
Domestic: a play on the increasing demand for mobile data by the
MNOs customers. Telecom Egypt offers volume-based
transmission & infrastructure leasing services to the domestic
mobile operators in Egypt.
International Carriers: revenue in foreign currency related to
incoming calls to Egypt with the direct driver being the Egyptian
expat population living abroad especially in the GCC. Traffic is
mostly directed to domestic MNOs. Although the global trend is
a declining international voice revenue stream, TE’s tactics
including fighting illegal bypass & increasing termination rate to
Egypt should is intended to stabilize such revenue stream.
13
International Customers & Networks: revenue in foreign currency
related mainly to TE’s extensive submarine network connecting
the increasing demand for data from the East to the West.
Leasing infrastructure & IGW to
domestic mobile operators
Providing connectivity to int’l carriers
Agreements with domestic MNOsSecuring long-term revenue streams
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Transmission Services
International Services
Transmission Services
International Services
Transmission Services
12bn
3bn
1.5bn
1.5bn
International Services 2.5bn
2.37bn
Securing longer term agreements with domestic
mobile operators
Boosting our wholesale revenue stream by
monetizing our infrastructure investments
Our main goals
1
2
4bn
1.5bn
14
Our cable systems networkoffers reach and reliability
SEAMEWE-3
SEAMEWE-4
FLAGFALCON-HAWK
IMEWE
EIG
SEACOM
TATA
ALETAR/BRYTAR
TE North
GBI
Taba-AqabaAAE1SEAMEWE -5
Alexandros
Trans border Terrestrial Cables with Libya & Sudan
Egypt
Iraq
Indonesia
Thailand
Myanmar
Morocco
Algeria
France
QatarIndia
Pakistan
Iran
Oman
Yemen
Saudi Arabia
Turkey
SyriaLebanon
Sudan
Ethiopia
Somalia
Libya
Mozambique Madagascar
Tanzania
Kenya
Greece
Tunisia
Djibouti
Sri Lanka
Jordan
Maldives
Taiwan
Brunei
Vietnam Philippine
JapanKorea
BelgiumUK
Singapore
Germany
China
Cyprus
Italy
Portugal
Eritrea
Bangladesh
Australia
U.A.E
Malaysia
MENA Cable
Egypt’s distinctive
geographic location on the
Red and Mediterranean seas
has enabled Telecom Egypt
to connect more than 11
cable systems from the East
and 13 from the West linked
with the Red-Med Corridor
consisting of 7 diversified
routes across Egypt.
Telecom Egypt’s global
network was built over the
years through investments in
international submarine
cable systems through
consortiums and in privately
owned cable systems. TE also
owns it own cable TE North
and has acquired the second
now wholly owned cable
MENA Cable in 2018.
15
339
881
47 62
338
59 46
225
161
165 236
368
146 178
407
207
467
655
961
382 451
2013 2014 2015 2016 2017 H1 2017 H1 2018
Cable Projects Ancillary Services (O&M) Capacity Sales
Our cable systemsCapitalizing on int’l traffic growth & our geographic location
Cable system revenue contribution
Cable revenue components
16
Cable revenue contributed to 9% of TE’s total consolidated revenue in 2017.
Revenue from this business is divided into 3 sub-segments:• Cable projects:
Revenue generated from new cables crossing Egypt and the sale of fiber pairs on cables owned
• Ancillary Services (O&M):Annual fees charged by Telecom Egypt for the operation & maintenance of cables crossing Egypt
• Capacity Sales:The sale of capacities on the cables, in which we participate in consortium or own, to other carries. Categorized as recurring and non-recurring contracts, some are leased capacities and some are IRU (indefeasible right of use for the lifetime of the cable).
Cable revenue breakdown( In EGP mn)
* Note: Starting 2017 capacity sales revenue is restated to include GDS services revenue
Our strategy in context
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenue EBITDA
Phase 4:
Exposure to full market
value
Growth story in contextTurning our legacy to our favor is key
Phase 1:
Robust incumbent
Cash cow with high margin
wholesale revenue and
constant revenue from fixed
voice services
Phase 2:
Stagnant revenue &
declining margins
Fixed to mobile substitution,
low investment leads to slow
data growth, lobbying from
domestic MNOs leads to
reduced margins as wholesale
dominates revenue mix
Phase 3:
Investing for growth
Implementation of integrated
operational model, boosting
infrastructure reach through
investment & extracting
synergies, lobbying to acquire
mobile license
0%
1
2
3
4
5
6
18
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenue EBITDA
Phase 4:
Exposure to full market
value
Growth story in contextWhile some expected the downfall, a turnaround plan was prepared…
Phase 1:
Robust incumbent
Cash cow with high margin
wholesale revenue and
constant revenue from fixed
voice services
Phase 2:
Stagnant revenue &
declining margins
Fixed to mobile substitution,
low investment leads to slow
data growth, lobbying from
domestic MNOs leads to
reduced margins as wholesale
dominates revenue mix
Phase 3:
Investing for growth
Implementation of integrated
operational model, boosting
infrastructure reach through
investment & extracting
synergies, lobbying to acquire
mobile license
0%
International consultants
hired in 2010
foresaw the downfall of
Telecom Egypt
characterizing the situation
as a “matter of When not
If”
Management decided to
capitalize on the existing
assets by enabling the
growth of fixed broadband
by drastically changing the
operational model
Initia
tives u
nd
erta
ken
Fully integrating
operating companies
Capitalizing on the
regional presence
Investing for the future
Developing the int’l
network reach
Securing wholesale
revenue stream
Lobbying for a total
telecom license
1
2
3
4
5
6
19
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenue EBITDA
Phase 4:
Exposure to full market
value
Growth story in context… and tangible results were achieved
Phase 1:
Robust incumbent
Cash cow with high margin
wholesale revenue and
constant revenue from fixed
voice services
Phase 2:
Stagnant revenue &
declining margins
Fixed to mobile substitution,
low investment leads to slow
data growth, lobbying from
domestic MNOs leads to
reduced margins as wholesale
dominates revenue mix
Phase 3:
Investing for growth
Implementation of integrated
operational model, boosting
infrastructure reach through
investment & extracting
synergies, lobbying to acquire
mobile license
0%
20
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenue EBITDA
Phase 4:
Exposure to full market
value
Growth story in context… and tangible results were achieved
Phase 1:
Robust incumbent
Cash cow with high margin
wholesale revenue and
constant revenue from fixed
voice services
Phase 2:
Stagnant revenue &
declining margins
Fixed to mobile substitution,
low investment leads to slow
data growth, lobbying from
domestic MNOs leads to
reduced margins as wholesale
dominates revenue mix
Phase 3:
Investing for growth
Implementation of integrated
operational model, boosting
infrastructure reach through
investment & extracting
synergies, lobbying to acquire
mobile license
0%
21
The next
phase of
growth
Redefining our strategic pillars
Alignment of
business and
technology
objectives
Excellence in
financial &
operational
planning
Process
efficiency &
structural
optimization
Leadership in
data through
customer focus
and innovation
Introducing our “LEAP” strategy4 main pillars to support next phase of growth
22
23 WE© | Kick-off Strategy Strictly Confidential | Limited Circulation
First integrated telecom operator
المصرية لالتصاالت TE data
Two separate companies
Shifting from to
Young and Progressive
Latest 4G technology
High value-for-money products
While maintaining Egyptian platform “ احنا منك”
“WE Business” expected to launch soon
Heritage, national identity
160+ year of experience
ADSL resources
Legacy processes
Transforming under the WE brand from separate companies to unique integrated service provider
Brand
Architecture
Unique Selling
Proposition
How the
customer sees
us*
Outdated infrastructure and untrained employees
Products’ portfolio doesn’t meet changing needs
Misses on the basic technological tools
Venues are poorly managed
Ignores customers’ feedback and complains
Fresh network with 4G technology
Brand is taking fast steps to catch up with the competition
Operator is also providing services for landlines and ADSL
Operator is supported with their heritage and national
identity
*Source: Customer Research by TNS 23
Customer service & experienceOur new brand identity & values revolves around customer focus
HistoryOrganization driven by technicians
April 2017Adoption of customer centric approach
July 2017New mobile centre creation
Sep. 2017New brand with new customer focus
OngoingExtending transformation strategy to fixed segments
Operational
excellence
Human CapitalNew era of
customer focus
Digital Support
boost
Sep-17 Oct-17 Nov-17 Dec-17
Mobile NPS
Global benchmark
Customer care strategic pillars
Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18
Fixed broadband NPSGlobal benchmark
NPS = % of Promoters - % of Detractors
24
• Negotiate favorable rates (achieved)
Cost efficiencies to drive earnings growthComplete plan outlined to reduce costs
National
roaming
Local
interconnect
Int’l
incoming
Depreciation &
Amortization
Salaries
Financing
Energy &
transport
• Push 4G 700 MHz handset penetration
• Develop Wi-Fi monetization model
• Execute RAN deployment strategy based on
heat maps
• Negotiate NR rates (achieved)
• Implement network solutions to maximize traffic
on WE network
National roaming
• Negotiate commercial offers to maximize int’l
traffic on we network
• Develop commercial plans for incoming traffic
terminated on WE network
Int’l incoming
• Efficient Capex management & negotiation of
better deals with vendors & suppliers
Depreciation & Amortization
• Developing a targeted voluntary early
retirement program
• Hiring new skilled caliber to change age profile
of TE employees
Salaries
• Shutting down exchanges already replaced by
MSAN
Energy & transport
• Develop an optimal financing structure to
minimize interest expense & enhance
profitability
Financing/ interestLocal interconnect
Multi-dimensional cost initiatives
25
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenue EBITDA
Phase 4:
Exposure to full market
value
Growth story in contextEarnings growth resumption on exposure to the full market value
Phase 1:
Robust incumbent
Cash cow with high margin
wholesale revenue and
constant revenue from fixed
voice services
Phase 2:
Stagnant revenue &
declining margins
Fixed to mobile substitution,
low investment leads to slow
data growth, lobbying from
domestic MNOs leads to
reduced margins as wholesale
dominates revenue mix
Phase 3:
Investing for growth
Implementation of integrated
operational model, boosting
infrastructure reach through
investment & extracting
synergies, lobbying to acquire
mobile license
0%
26
Financial highlights
Wholesale
Retail
Revenue by business unitGrowth across all business lines
Home & Consumer
Domestic
Enterprise
International Carriers Affairs International Customers & Networks
2,984 3,129 3,5684,228
5,662
2,5903,764
2017 H1 20182014 2016
+18%
+14%
20152013
+34%
+5%
+45%
H1 2017
1,644 1,879 1,9052,389
2,627
1,187 1,212
+25%
H1 2018
+14%
2015 H1 20172013 2014
+2%
+1%
2017
+10%
2016
2,2582,703 2,927 3,004
3,304
1,6731,965
2013
+8%
+17%
+3%
2014
+10%
+20%
H1 2018H1 2017201720162015
3,142 3,067 2,977 3,203
4,868
2,512 2,236
2014
+52%
20172015
-11%-2%
2016
+8%
2013 H1 2017 H1 2018
-3%
1,1091,380
8071,126
2,106
774 947
+87%
2013 2015
+22%
H1 201820172016
+40%
+24%-42%
H1 20172014
28
Key financial highlights
Revenue (EGP mn)
EBITDA (EGP mn)
Net profit(EGP mn )
Operating Profit(EGP mn)
11,138 12,158 12,18413,950
18,567
8,73610,125
H1 20182013 20152014 2016 H1 20172017
+9% 0%
+14%
+33%
+16%
3,684 3,8353,435
3,801
5,184
2,7783,293
201620152013 2014 H1 20182017 H1 2017
+4%-10%
+11%
+36%
+19%
1,906 2,024
1,537
1,991 2,023 1,9812,197
20142013 20162015 2017 H1 2017 H1 2018
+6%-24%
+30% +2%+11%
2,958
1,417
2,9972,670
3,0522,520
2,058
2013 20172014 H1 20182015 2016 H1 2017
-52%+112%
-11%+14%
-18%
29
FCFF(EGP mn)a
2,083 1,796
1,597
4,338 4,649
2,165
1,695
2,614
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 H1 2017 H1 2018 Nor.H1 2018
Normalizing for one-off settlement payment to
Etisalat of EGP 919mn
Net cash from operating activities (EGP mn)
Cash flow analysis
Cash capex(EGP mn)
Note: All financial figures reported are based on Consolidated financials under The Egyptian Accounting Standards.
In-service capex
(EGP mn)
30
756
1,584
2,609 3,312
6,088
2,878
2,918
5,294
1,420 269 73
7%13%
21%
62%
40%36%
30%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
-
1,00 0
2,00 0
3,00 0
4,00 0
5,00 0
6,00 0
7,00 0
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 H1 2017 H1 2018
Capex License Capex/sales
756
2,523 3,159
4,731
7,376
1,784 1,672
5,294
3,340
7%
21%26%
72%
58%
20%17%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
-
1,00 0
2,00 0
3,00 0
4,00 0
5,00 0
6,00 0
7,00 0
8,00 0
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 H1 2017 H1 2018
Capex License Capex/sales
1,682
(500)
147
(2,603) (2,456)
(883) (891)
28
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 H1 2017 H1 2018 Nor.H1 2018
Normalizing for one-off settlement payment to Etisalat of EGP 919mn
4,641 2,484 2,977 2,273
925 -516 -412 -391
-7,026 -9,242
-4,125 -2,072 -2,586 4,753 8,317
H1 2014 H1 2015 H1 2016 H1 2017 H1 2018
Net debt
Total debt CashNet debt(EGP mn)
Balance sheet highlights
FCFE(EGP mn)
Net debt/ EBITDA(EGP mn)
Breakdown of capex in-service
73%
10%
5%
11% 1%
FY 2017
Access Network Transmission International cable Customer care Others
31
-0.8x -0.7x -0.6x
0.9x
1.3x
H1 2014 H1 2015 H1 2016 H1 2017 H1 2018
1,541
(591)
62
(97)
1,191
2,767
729
1,648
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 H1 2017 H1 2018 Nor.H1 2018
Normalizing for one-off settlement payment to Etisalat of EGP 919mn
Delivering on our guidance
Revenue Growth y/y
EBITDA margin (%)
CAPEX / sales (%)
FY 2017
actual
FY 2017
guidance
33% High 20s
28%High 20s to
early 30s
In-service:
40%
Cash: 32%
40%
FY 2017
normalized
%13
27%
In service:
26%
Cash: 22%
2018
guidance
high single
to low
double digit
Mid to high
20s
30-35%
32
H1 2018
actual
16%
33%
In-service:
17%
Cash: 30%
