Post on 07-Apr-2018
8/3/2019 Investor Presentation FY 2010
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FY 2010
8/3/2019 Investor Presentation FY 2010
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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 and no representation or warranty, expressor implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions
contained herein. The information set out herein is subject to updating, completion, revision, verification and amendment and such information
may change materially. The Company is under no obligation to update or keep current the information contained in this material or in the
presentation to which it relates and any opinions expressed in them is subject to change without notice. None of the Company or any of their
respective affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising
from any use of this document or its contents, or otherwise arising in connection with this document.
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 your information and background 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 (excluding the relevant persons professional advisors) or published in whole or in part for any purpose without the prior written consent
of the Company.
This presentation includes forward-looking statements. These forward-looking statements include all matters that are not historical facts,
statements regarding the Companys intentions, beliefs or current expectations concerning, among other things, the Companys results of
operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forward-
looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the
future. The Company cautions you that forward looking statements are not guarantees of future performance and that its actual results of
operations, financial condition and liquidity and the development of the industry in which the company operates may differ materially from those
made in or suggested by the forward-looking statements contained in this presentation. In addition, even if the Companys results of operations,
financial condition and liquidity and the development of the industry in which the Company operates are consistent with the forward-looking
statements contained in this presentation, those results or developments may not be indicative of results or developments in future periods. The
Company does not undertake any obligation to review or confirm analysts expectations or estimates or to release publicly any revisions to any
forward-lookingstatements to reflect events that occur or circumstances that arise after the date of this presentation.
Disclaimer
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6 Fact Sheet Fixed Voice & Mobile Internet & DataWholesale Submarine Cable Vodafone Egypt
Telecom Egypts Retail Business
Retention of ARPU customers:
Promotional offers & bundles
Introduction of triple play services
Interconnection cost reduction to offer more competitive rates
Defend Voice Revenue Responding To Aggressive Market Competition
1
Customers can subscribe to (Kalam 12 tariff plan) to get 120
local minutes, 80 national minutes & 10 mobile minutes in
exchange of the current subscription fees with no additional
cost. They will be billed every 3 months as usual.
Residential Customers: a total discount of 300 L.E. (250 L.E. the
installation fees & 50 L.E. the administrative fees). Business Customers: a total discount of 550 L.E. (500 L.E. the
installation fees & 50 L.E. the administrative fees).
Lowest rate to mobiles from landline.
Customers Choose the bundle that best fits their needs
Starting from 100 L.E monthly, and they get:
Extra free minutes
Extra discount on international calls
Residential Customers
From May until July TE is offering its residential customers,
three months of free minutes and exemption on installation
fees. The offer is applied fro local, long distance and fixed to
mobile calls.
Residential Customers
Lowest Minute Rate.
only 15 Pt. for mobile to fixed calls (starts from the first
minute). This offer includes current and new customers.
8/3/2019 Investor Presentation FY 2010
7/187 Fact Sheet Fixed Voice & Mobile Internet & Data
Wholesale Submarine Cable Vodafone Egypt
80.0
123.5184.7
345.2
501.5
622.3
841.7
FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010
Internet and Data TE Data
Internet & Data Revenue Growth (In EGP Millions)
Market Share ADSL (In EGP Millions) Differentiated Service Offering
Overview TE Data
Fully owned subsidiary of Telecom Egypt
Market leader with 63% market share Product
Portfolio includes:
Switched Access Services
Broadband Access Internet Services
Managed Access Services
Extensive marketing infrastructure tailored to focuson residential and business customers.
Operations in Egypt and Jordan
IP-TV (TE VU), Prepaid International Calling Cards -(Habayebna) , WiMAX Demonstration License & DataCenter Services.
TE Data and ART Ramadan TELive service is the firstof its kind where ICT and media really merge.
TE Data and Microsoft is the first of its kindpartnership in Egypt and the middle east, and the 6thworldwide to provide new innovative services to itscustomers based on Microsoft Live platform.9.2 27.3 92.3
222.2
424.4
625.2
883.2
26.5%30.5%
44.9%
52.0%
59.0%60.9%
63.0%
0
100
200
300
400
500
600
700
800
900
1000
10%
20%
30%
40%
50%
60%
70%
80%
FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010
Subscribers
Market Share
Revenue CAGR (2004-2010): 48.0%
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8/188 Fact Sheet Fixed Voice & Mobile Internet & Data
Wholesale Submarine Cable Vodafone Egypt
Telecom Egypts International & Wholesale Growth
National
Services
Portfolio
International
Services
Portfolio
Offers wide range of national services, including:
Infrastructure and transport
Voice and data services
Collocation and Hosting services
Enables 60 million fixed and mobile subscribers and over onemillion broadband users.
Offers wide range of international services, including:
International voice conveyance services
International connectivity and data/IP services
Expanded network reach through partnerships with Tier-1international players ( AT&T, Verizon and TATA).
32% 39% 39% 48%42%
I&W Main
Customers
Segments
Mobile Operators
Data Operators
TE Retail
Submarine Cables
Wholesale Revenue Growth (In EGP Millions)
CAGR (2006-2010): 12.8%
Percentage of TEs Total Revenue
Main Customers Segments & Service Landscape
3,053
3,852 3,9364,197
4,939
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010
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9/189 Fact Sheet Fixed Voice & Mobile Internet & Data
Wholesale Submarine Cable Vodafone Egypt
Submarine Cable Opportunity
International Customers BU Growth Pillars
Project Contractual Progress (In USD Millions)
# Cable IRU Value / TETransit Corridor
Asset Transfer /TEN
1 IMEWE 36
2 Seacom/TATA 40 43
3 EIG 50
4 TE North - CYTA 50
Total 126 93
Grand Total 219
Leverage TE national backbone and international infrastructure to
support TE international business
Diversify TE International Service Portfolio
Extend TEs international service portfolio by developing new
value added services
Leverage partnerships with global operators to enhance
international brand image
Expand TE International Reach
Expand TE international footprint by deploying PoPs and
expanding customer base
Identify opportunities for new business development (e.g. TE-
North expansion or deployment of new cable system)
Seek partnerships with international carriers to enter new
markets
Enhance Sales Capabilities Develop sales capabilities and enhance international account
management
1
2
3
Position TE as a regional Asia And East Africa gateway to Europe for
traffic originating from Asian, Middle-Eastern and African countries
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10 Fact Sheet Fixed Voice & Mobile Internet & DataWholesale Submarine Cable Vodafone Egypt
Telecom Egypts Position In The Mobile Sector
31.8 mn
43.2bn
1.2mn
30.6 mn
Number of Total Closing Subs
Total Voice Minutes
Number of Postpaid Subs (4%)
Number of Prepaid Subs (96%)
EGP 9.2 bn
EGP 1.7 bn
Revenue
Capex
EGP 2.1 bnNet Profit
EGP 1.35 bn contribution to TEs net profit in FY 2010
Increase in total closing customers year-on-year36%
Growth in total voice minutes51%
Revenue increase year-on-year
SolidFinancial&Operational
Performancein9M
2010*
* Vodafone Egypts Financial Year ending 31stMarch .
Operational Highlights 9M 2010
Financial Highlights 9M 2010 1%
Customers Enjoy
receiving unlimited
roaming minutes for
only LE I per minute
anywhere.
prepaid
customers can
send free 1500
SMS to any
Vodafone number
for only LE 4.
50% discount
on the internet
monthly
subscription
fees.
Make 3 min. to any
mobile or land line
and enjoy 5
minutes to any
Vodafone number.
Upon recharging,
customers enjoy from 3
to 30 free days to any
Vodafone Number.
In Ramadan, upon
recharging, customers
have a chance to win
free calls for a day or
month or free SMSs
to all Vodafone
numbers.
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12Income Statement Revenue
EBITDA Balance Sheet
Summary Income Statement Full Year YoY% Change
In EGP Millions FY 2010 FY 2009
Revenue 10,318 9,960 3.59%
EBITDA 4,865 5,048 -3.63%
Margin 47% 51%
EBIT 3,577 3,515 1.76%
Margin 35% 35%
Profit Before Tax & Minority Interest 3,804 3,510 8.36%
Margin 37% 35%
Net Profit 3,309 3,051 8.45%
Margin 32% 31%
EPS 1.72 1.64 4.87%
Note:All financial figures reported are based on Consolidated financials under Egyptian Accounting Standards
Summary Income Statement
Revenue (In EGP Millions)
NPAT Growth (In EGP Millions)
2,427 2,5342,790
3,0513,309
26% 25% 28%31% 32%
-
500
1,000
1,500
2,000
2,500
3,000
3,500
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010
NPAT NPAT Margin
CAGR (2006-2010): 2.0%
CAGR (2006-2010): 8.1%
9,517
9,99310,117
9,960
10,318
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010
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13Income Statement Revenue
EBITDA Balance Sheet
RevenueFull Year
YoY% ChangeIn EGP Millions FY 2010 FY 2009
Retail Services
Access:
Access Revenue 1,809 2,049 -11.72%
Voice:
Voice Revenue 2,124 2,618 -18.88%
Internet & Data 810 649 24.84%
Others 637 448 42.24%
Total Retail Revenue 5,379 5,764 -6.67%
Wholesale Services
Domestic:
Domestic Revenue 1,242 1,029 20.67%
International:
International Revenue 3,697 3,168 16.70%
Total wholesale Revenue 4,939 4,197 17.68%
Total Revenues 10,318 9,960 3.59%
Revenue Breakdown
FY 2010 Revenue Analysis
Note:All financial figures reported are based on Consolidated financials under Egyptian Accounting Standards
Revenue Mix ( In EGP Millions)
17%
21%
36%
12%
14%
Access
Voice
Int`l WS
Domestic WS
Internet & Others
6,4646,141 6,181
5,7645,379
3,0533,852 3,936 4,197
4,939
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010
Retail Wholesale
52%
48%
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14Income Statement Revenue
EBITDA Balance Sheet
10.32 2.30
1.022.14
4.86
22.2%9.9%
20.7%
47.1%
Sales Revenue Personnel Cost Interconnect Cost Other Opex EBITDA
( )Margin
( )
( )
CAGR (2006-2010): -2.0%
FY 2010
In EGP Billions
(% of Sales)
EBITDA Analysis
EBITDA (In EGP Millions)
5,2775,389
5,163 5,0484,865
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010
EBITDA Margin (In Percent %)
55%54%
51% 51%47%
20%
25%
30%
35%
40%
45%
50%
55%
60%
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010
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15Income Statement Revenue
EBITDA Balance Sheet
Summary Balance Sheet Full Year YoY% Change
In EGP Millions FY 2010 FY 2009
Current Assets 9,126 7,220 26.40%
Net Fixed Assets 14,528 16,086 -9.68%
Long - Term Investments 7,515 7,731 -2.79%
Other Long -Term Assets 2,035 1,424 42.88%
Total Assets 33,204 32,461 2.29%
Curent Liabilities (Exc. STD) 4,194 4,093 2.49%
Bank Short-Term Borrowings 0 7 -100.00%
CPLTD 150 179 -16.07%
Long -Term Debt 725 858 -15.46%
Other Non-Current Liabilities 146 57 158.34%
Total Liabilities 5,216 5,193 0.45%
Total Equity & Minority Interest 27,988 27,268 2.64%
Total Liabilities & Equity 33,204 32,461 2.29%
Capital Expenditure (CAPEX) ( In EGP Millions)
Summary Balance Sheet
Note:All financial figures reported are based on Consolidated financials under Egyptian Accounting Standards
Debt Position ( In EGP Millions)
1,937
945 919 9811,08620%
9% 9% 10%11%
0%
10%
20%
30%
-100
100
300
500
700
900
1,100
1,300
1,500
1,700
1,900
2,100
2,300
2,500
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010
Capex Capex/Sales
6,777
3,589
411-1,409
-4,101
712
1,397
2,7352,453
4,976
393
600
361
137
26 0
100
200
300
400
500
600
-6,000
-4,000
-2,000
0
2,000
4,000
6,000
8,000
10,000
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010
Cash Net Debt Interest Exp.
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17
Closing Remarks
Strong Growth in Full Year Net Profit After Tax
Solid Growth in Wholesale Revenue
Robust Cash Position and Solid Balance Sheet
Ownership of Strong Performing Mobile Asset
Strong Platform of Cashflow Generation
Upside Potential from Under Penetrated Broadband Market
Ability to Capitalize on Unique Geographic Position
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Investor Relations Contacts
Mahmoud Abu TalebDirector of Investment & Investor Relations
Tel:+202 3131 5266Fax:+202 3131 6115Email: investor.relations@telecomegypt.com.eg
Mohamed Kamal
General Manager of Investor Relations & Internal Reporting
Tel:+202 3131 5219Fax:+202 3131 6115Email: investor.relations@telecomegypt.com.eg
Website:ir.telecomegypt.com.eg
mailto:investor.relations@telecomegypt.com.egmailto:investor.relations@telecomegypt.com.eghttp://www.ir.telecomegypt.com.eg/http://www.ir.telecomegypt.com.eg/mailto:investor.relations@telecomegypt.com.egmailto:investor.relations@telecomegypt.com.egmailto:investor.relations@telecomegypt.com.eg