Etisalat Group-Capital Markets Day 2015

Etisalat Group
Capital Markets Day
10 March 2016
Yas Island, Abu Dhabi
Disclaimer
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.
2
Agenda
1. Business Overview – Hatem Dowidar, Acting CEO-Etisalat Group
2. Financial Overview – Serkan Okandan, CFO-Etisalat Group
3. Etisalat UAE Operations – Saleh Al Abdooli, CEO-Etisalat UAE
4. Mobily Operations – Ahmad Farroukh, CEO-Mobily
5. Etisalat Misr Operations – Hazem Metwally, CEO-Etisalat Misr
6. Closing Remarks - Hatem Dowidar, Acting CEO-Etisalat Group
3
1. Business Overview
Hatem Dowidar
Acting Chief Executive Officer
Etisalat Group
Significant scale, profitability, cash generation and
strong balance sheet ...
Etisalat Group Footprint
Key facts1)
 18 countries, 167m subs
Afghanistan
Morocco
UAE
Egypt
Mauritania Mali
 Revenue: AED 51.7bn
Pakistan
 EBITDA: AED 26.6 bn (51 %
margin)
Saudi Arabia
Niger
Burkina
Sudan
Faso Benin
Nigeria
Cote d’Ivoire
Central African Republic
Togo
 OFCF: AED 16.2 bn (31 %
margin)
Sri Lanka
 Net Profit: AED 8.3bn (16%
margin)
Gabon
 DPS 80 fils (84% payout ratio)
 SP&P: AA-, (Outlook : Stable)
 Moody’s : Aa3, (Outlook: Stable
 Fitch: A+, (Outlook: stable)
Mobile Services
Fixed-line Services
(1) Key financials are for FY 2015 (FX rate of AED 3.674/USD)
(2) On March 8th, 2016 Moody’s placed Etisalat Group under review
Mobile & Fixed-line Services
5
(2))
Key events during 2015...
Portfolio
Optimization
 Completed restructure of Atlantique Telecom under Maroc Telecom Group
 Completed sale of 85% shareholding in Zantel
 Completed towers sale and leaseback in Nigeria
 Key network investments and build-up of digital and ICT capabilities in the UAE
Strategic
Investment
 Acquisition of 4G license and spectrum in Morocco and launched 4G+ services
 Renewal of 2G license in Mauritania and Niger
 Acquisition of 3G license and universal license in Niger and Ivory Coast respectively
 Allowing Foreign and Institutional investors to own Etisalat’s share
Corporate
Structure
 Etisalat inclusion in the MSCI EM index effective from 1st December 2015
 Etisalat inclusion in the FTSE EM index effective from close of business on Friday,
18 March 2016 (i.e. on Sunday, 20 March 2016)
6
Attractive returns to shareholders
Total Shareholder Return in USD1
(% USD, 1st Jan - 31st Dec 2015)
71%
11%
2%
-1%
-6%
-7%
-14%
-21%
-21%
-31%
-37%
-52%
Etisalat
STC
Orange Vodafone Vodacom
Airtel
Telenor
19.3
25.2
Millicom Vimpelcom
Zain
Ooredoo
MTN
Market Capitalization
(USD Bn, 31st Dec 2015)
2014
2015
23.6
38.1
Note 1:
Source:
36.5
44.6
86.7
14.6
Shareholder returns assume reinvestment of dividend proceeds in the stock
Bloomberg, Etisalat Group Strategy analysis
5.8
5.8
5.0
6.6
15.6
7
The dynamics in the telecom industry are rapidly changing
Industry Dynamics - High Level
Macroeconomic
environment
(Inflation, ForEx)
Competition dynamics is
changing - global
ROI expectations for the
industry
Intense competition and
price pressure
Telecom Industry
Challenges
Regulatory & tax policies
Investment requirements
in hard currency
Consumption pattern
exploding
Spectrum availability &
pricing
8
In this context, Etisalat has the ambition to strengthen
its status of leading digital telecom group
Sustainable Growth in Digital Age
B2B
Customer Lifecycle
Management
Leverage
Group’s scale
Content, M2M,
IoT
Mobile Financial
Services
Voice & Data
Selected
adjacents
Lean operations
Next generation
operations
Efficiency and
rationalization
of operations
Innovative
Network technologies
Evolving
operating model
Attention to efficiency –journey for operational transformation
9
2016 Priorities

Progress with portfolio optimisation

Purse opportunities for Cost improvement

Defend value share and leadership position in Morocco and UAE

Operations with challenger position to grow faster than the market

Invest in spectrum and networks to support data growth

Develop digital and ICT capabilities

Increase focus on cash flow generation
10
2. Financial Overview
Serkan Okandan
Chief Financial Officer
Etisalat Group
Etisalat Group Financial Highlights
AED Million
Q4 2015
Growth
YoY%
FY2015
Growth
YoY%
Revenue
12,671
-4%
51,737
+7%
EBITDA
6,488
+19%
26,526
+14%
51%
+10pp
51%
+3pp
2,604
+10%
8,263
-4%
21%
+3pp
16%
-2pp
4,931
+79%
10,309
+16%
39%
+18PP
20%
+2pp
EBITDA Margin
Net profit
Net profit Margin
Capex
Capex/Revenue
4Q2015 Highlights
 One-off impacted revenue and EBITDA growth
 Like-for-like revenue growth is flat
FY2015 Highlights
 Revenue growth driven by performance of domestic
operations and full consolidation of Maroc Telecom
 Margin improvement due to better revenue mix and cost
control measures
 Margin improvement due to better revenue mix and cost
control measures
 Higher profit due to lower amortization charges share of
losses from associates.
 Profit decline due to higher dep/amortization expenses,
forex losses, finance costs and royalty charges
 Higher capex spend due to domestic operations and
new licenses acquisition/renewal in CDI and Niger
 Higher capex spend due to domestic operations &
licenses acquisition/renewal within MT Group operations
(1) Financial figures are restated to exclude the impact of discontinued operations (Zantel & Canar)
12
2015 Actual Against Guidance:
Financial KPI
Guidance 2015
Main Reasons
Actual 2015
 Overall slow-down in revenue growth
Revenue Growth %
~ 9%
6.7%
 Further currency devaluation of MAD and EGP
impacted revenue in AED (>1 pp)
 One-time adjustments impacting revenue (~1 pp)
EBITDA Margin%
~ 50%
51.3%
CAPEX / Revenue %
~ 15%
19.9%
 More favorable revenue mix in Q4’15
 Faster closure of projects before year-end
 License acquisitions/renewal in CDI & Niger in
Dec (~1 pp)
 Capitalization of network projects (~4 pp)
13
Etisalat Group Financial Highlights
Revenue Breakdown FY 2015 (AED m)
24%
EBITDA Breakdown FY 2015 (AED m)
9%
51.7
bn
24%
8%
3%
6%
5%
4%
26.5
bn
56%
61%
+14%
+7%
YoY Growth
+6%
UAE
+52%
MT Group
YoY Growth
+9%
UAE
+42%
MT Group
Egypt
(LC +2%)
-6%
Egypt
(LC +2%)
-4%
Pakistan
(LC -9%)
-10%
Pakistan
(LC +4%)
+2%
(1) Financial figures are restated to exclude the impact of discontinued operations (Zantel & Canar)
Represents others
14
Int’l Operations Financial Highlights FY 2015
Revenue (AED m)/EBITDA (AED m) /
EBITDA Margin (%)
Revenue & EBITDA (AED m) /
EBITDA Margin (%) / YoY Growth %
Maroc Telecom Group
31%
43%
39%
55%
22,344
FY 2015
Revenue
12,316
+52% +75%
EBITDA
6,308
+42% +61%
EBITDA Margin
51%
-4pp
-4pp
FY 2015
YoY
Growth
in AED
YoY
growth in
PKR
21,107
Etisalat Misr
20%
13,182
9,571
Revenue
4,544
-6%
+2%
EBITDA
1,692
-4%
+2%
EBITDA Margin
+37%
+1pp
+1pp
8,306
Pakistan
4,035
19%
FY'13
FY'14
Revenue
FY'15
EBITDA
(1) Financial figures are restated to exclude the impact of discontinued operations (Zantel & Canar)
YoY Growth Growth in
MAD
in AED
FY 2015
YoY
Growth
in AED
YoY
growth in
PKR
Revenue
4,236
-10%
-9%
EBITDA
1,292
+2%
+4%
EBITDA Margin
30%
+4pp
+4pp
15
Group Revenue
Revenue (AED m) and YoY growth (%)
51,737
48,509
35%
Sources of Revenue growth – Q4’15 vs Q4’14 (AED m)
162
13,204
(109 )
26%
13,204
12,989
12,671
Q4'14
Q3'15
Q4'15
Revenue
7%
FY'14
FY'15
Q4'14
UAE
Others
1%
Egypt
Pakistan
Others
Q4'15
Highlights
International
 In Q4’15 consolidated revenue declined Y/Y by 4% attributed to
one-off adjustments; on a like for like it is flat.
 Revenues from international consolidated operations declined by
1%, resulting in 44% contribution to Group revenues, an
improvement of 1 point compared to Q4’14
Egypt
22%
Int'l
44%
MT Group
YoY growth %
Revenue by Cluster (Q4’15)
Domestic vs. Int’l
12,671
(466 )
-4%
-1%
UAE
55%
(47 )
(72)
MT
55%
Pakistan
18%
Others
5%
― Growth in MT group driven by int’l operations
― Revenue growth in Egypt in local currency
― Revenue growth in Pakistan negatively impacted by
increased competition in international and mobile revenue
― Others reflect the consolidation of Atlantique Groups’
operations under Maroc Telecom
Note: “Others revenues” consist of domestic non-telecom operations, other international operations, management fees, etc.
16
Group EBITDA
Sources of EBITDA growth – Q4’15 vs Q4’14 (AED m)
EBITDA (AED m) & EBITDA Margin
26,526
23,212
51%
41%
5,453
Q4'14
51%
6,488
Q3'15
EBITDA
Q4'15
51%
48%
FY'14
EBITDA Margin
FY'15
Q4'14
UAE
EBITDA by Cluster (Q4’15)
Int'l
34%
Others
6%
Pakistan
Others
6,487
International
(11 )
MT Group
Egypt
Q4'15
 In Q4’15 Consolidated EBITDA increased Y/Y by 19% to AED 6.5 bn
 EBITDA in the UAE positively impacted by lower cost of sales and
reduced operating costs.
 EBITDA of consolidated international operations increased Y/Y by
10%, resulting in 34% contribution to Group EBITDA, a contraction
of 2 points compared to Q4’14
Pakistan
12%
MT
66%
(26)
Highlights
Egypt
18%
UAE
60%
471
5,453
6,653
Domestic vs. Int’l
245
355
Others
4%
― Maroc Telecom and Egypt impacted by currency depreciation;
maintained growth in local currency
― Pakistan benefited from one-off related to Voluntarily
Separation Scheme implemented in Q4 2014.
Note: “Others EBITDA” consist of domestic non-telecom operations, other international operations, management fees, etc.
17
Group CAPEX
Sources of Capex growth – Q4’15 vs Q4’14 (AED m)
CAPEX (AED m) & CAPEX/Revenue Ratio (%)
39%
1,777
10,309
737
3
4,931
8,914
21%
15%
2,749
Q4'14
4,931
CAPEX
18%
Q4'15
Pakistan
Others
2,749
FY'14
FY'15
Q4'14
CAPEX/Revenue
UAE
CAPEX by Cluster (Q4’15)
Domestic vs. Int’l
(258)
18%
14%
1,927
Q3'15
20%
(77)
MT Group
Egypt
Q4'15
Highlights
International

In Q4’15 Consolidated Capex increased Y/Y by 79% resulting in
Capex/ Revenue ratio of 39%. This increase was driven by:
―
Int'l
46%
UAE
54%
Egypt
15%
MT
67%
Higher capital spend in the UAE operations due to
capitalization of network projects and focus on network
modernization, digital and ICT capabilities
Pakistan
16%
Others
2%
―
License Renewal / Acquisition in Ivory Coast & Niger
―
Lower capex spending in Pakistan
―
Lower capex spend in Afghanistan and reclassifying
Atlantique operations under MT Group
18
Group Balance Sheet & Cash Flows
Balance Sheet (AED m)
Dec-14
Dec-15
Cash & Cash Equivalent (1)
18,543
21,422
Total Assets
128,178
128,265
Total Debt (1)
22,229
22,080
Net Cash / (Debt)
(3,686)
(658)
Total Equity
60,283
59,375
FY’14
FY’15
Operating
17,209
20,425
Investing
(24,102)
(9,339)
Financing
9,162
Net change in cash
Net cash position (AED m)
Investment Grade Credit Ratings
AA-/Stable
A+/Stable
Aa3/Stable (2)
Highlights

Maintained healthy liquidity position
(8,387)

Low net debt to EBITDA level
2,268
2,967

Better operating cash flow due to better profitability
Effect of FX rate changes
834
(9)

Maintained strong credit ratings with stable outlook from the
Reclassified as held for sales
(9)
(78)
18,543
21,422
Ending cash balance
(1)
(2)
Balances as of 31 December 2014 & 2015 excludes discontinued operations
On March 8th, 2016 Moody’s placed Etisalat Group under review
three credit ratings agencies
19
Debt Profile: Diversified debt portfolio
Borrowings (1) by Currency FY’15
Borrowings (1) by Operation FY’15 (AED m)
15,169
MAD
12%
Others
16%
Euro
44%
3,563
2,040
Group
MT Group
1,022
Egypt
USD
28%
286
Pakistan
Sri Lanka
Debt (1) by Source FY’15 (AED m)
Repayment (1) Schedule
14,609
11,503
6,566
4,200
4,131
2,246
Bonds
(1)
Bank Borrowings
273
632
vendor Financing
Others
2016
2017
2-5 years
> 5 years
Debt balance as of 31 December 2015 excludes borrowing from discontinued operations
20
Group Dividends: Proposed dividend for 2015 of AED 80
fils per share
Dividends Per Share (AED)
Cash Dividends (AED m)
5,535
5,535
5,535
6,957
3,479
3,558
1,977
2012
2,767
2,767
2,767
2,767
2013
2014
0.8
0.7
0.7
0.7
2012
2013
2014
3,479
2015
Dividend Payout Ratio (%)
Dividend Yield (1)
7.3%
81.2%
5.8%
2012
2013
6.1%
2015
84.2%
78.2%
64.3%
5.1%
2014
2015
2012
2013
2014
2015
 Proposed dividends are subject to the shareholders approval on the AGM scheduled on March 27th, 2016
(1)
Dividend yield is based on share price as of 18 August 2015 and 08 March 2016
21
Country by Country Financial Review
22
UAE: Sustained strong revenue growth and profitability
Q4’14
Q3’15
Q4’15
QoQ
Growth
YoY
Growth
FY’14
FY’15
YoY
Growth
Subs(1) (m)
11.0
11.6
11.6
0%
+6%
11.0
11.6
+6%
Revenue (AED m)
6,978
7,168
6,906
-4%
-1%
27,095
28,774
+6%
EBITDA (AED m)
3,531
4,138
3,886
-6%
+10%
14,957
16,279
+9%
EBITDA Margin
51%
58%
56%
-1pp
+6pp
55%
57%
+1pp
Net Profit
2,239
1,825
1,828
0%
-18%
7,309
7,325
0%
Net Profit Margin
32%
25%
26%
+1pp
-6pp
27%
25%
-2pp
CAPEX
908
737
2,685
+264%
+196%
2,524
4,941
+96%
CAPEX/Revenue
13%
10%
39%
+29pp
+25pp
9%
17%
+8pp
Highlights
 Subscriber growth Y/Y driven by mobile and eLife segments
 Revenue impacted by one-off adjustments in fourth quarter; on a like-for-like basis Q4 Y/Y & Q/Q growth is +6% and +3%, respectively.
― FY 2015 revenue growth is +8% on a like-for-like basis
 Strong revenue growth Y/Y attributed to growth in bundled propositions (voice & data) to Consumer & Enterprise segments, higher
handset sales.
 EBITDA level impacted by one-off adjustments in the fourth quarter; on a like-for-like basis Q4 Y/Y & Q/Q growth is +19% and +2%,
respectively.
― FY 2015 EBITDA growth is 11% on a like-for-like basis
 Maintained healthy EBITDA margin at 56-57% level
 Lower Y/Y net profit in Q4 due to higher depreciation expenses, forex losses and higher royalty charges
― FY 2015 net profit iY/Y growth is flat
 Increase in capital spending due to capitalization of network projects, network modernization and focus on digital and ICT capabilities
(1)
Subscriber numbers calculated as aggregate number of GSM, fixed, fixed broadband and eLife lines generating revenue during the last 90 days.
23
UAE: Sustained growth in eLife and mobile subscribers
Mobile Subs (m) & ARPU(1) (AED)
115
7.53
117
110
7.94
7.91
1.51
1.71
1.77
Q4'14
Q3'15
Q4'15
Postpaid
Prepaid
Fixed Subs (m) & ARPL(2) (AED)
137
0.90
0.87
Q4'14
Q3'15
Q4'15
Fixed
Blended ARPU
380
398
407
0.78
0.84
0.87
(1)
(2)
(3)
Q3'15
E-Life (2P & 3P)
Q4'15
ARPL
122
0.97
eLife Subs – Double & Triple-Play (m)
Q4'14
125
ARPL
Fixed Broadband(3) Subs (m)
496
498
498
0.98
1.04
1.06
Q4'14
Q3'15
Fixed BB
Mobile ARPU (“Average Revenue Per User”) calculated as total mobile voice, data and roaming revenues divided by the average mobile subscribers.
ARPL (“Average Revenue Per Line”) calculated as fixed line revenues divided by the average fixed subscribers.
Fixed broadband subscriber numbers calculated as total of residential DSL (Al-Shamil), corporate DSL (Business One) and E-Life subscribers.
Q4'15
ARPL
24
Maroc Telecom: Growth driven by int’l subsidiaries
Morocco, Benin, Burkina Faso, CAR, CDI, Gabon, Mali, Mauritania and Togo
Revenue (AED m)
Subscribers (m)
(1)
12,728
50.8
50.7
/ EBITDA Margin
CAPEX (AED m) & CAPEX/Revenue Ratio (%)
3,298
12,316
40.2
1,995
53%
51%
48%
54%
51%
26%
2,907
3,206
47%
1,497
3,069
760
24%
775
27%
31%
16%
Q4'14
Q3'15
Q4'15
Q4'14
Q3'15
Revenue
Q4'15
FY'14
Int'l
41%
Moroc
co
56%
Q4'15
FY'14
FY'15
CAPEX/Revenue
Capex Breakdown Q4’15
Domestic vs. Int’l
Int’l
Historical
subsidiaries
62%
Q3'15
CAPEX
Revenue Breakdown Q4’15
Domestic vs. Int’l
Q4'14
FY'15
EBITDA %
19%
New
subsidiaries
38%
Morocco
41%
Int'l
59%
Int’l
Historical
New
subsidiaries subsidiaries
29%
71%
Others
-3%
25
Egypt: Improved profitability in local currency
Total Subscribers (1) (m)
4,844
95
93
94
23%
24%
24%
CAPEX (AED m) & CAPEX/Revenue Ratio (%)
Revenue (AED m) / EBITDA Margin
1,029
4,544
880
44%
31%
1,293
1,138
32%
1,246
36%
37%
176
26%
Q4'14
Q3'15
Subscribers
Q4'15
Q4'14
Q3'15
Market Share
Q4'15
Revenue
FY'14
340
337
FY'15
EBITDA %
Q4'14
21%
19%
FY'14
FY'15
27%
15%
Q3'15
CAPEX
Q3'15
CAPEX/Revenue
Highlights
 Subscriber growth impacted by regulator mandated subscriber registration exercise
 Revenue growth Y/Y impacted by currency depreciation
― Maintained revenue growth in local currency: 5% in Q4 and 2% for the full year
 Revenue growth is mainly attributed to continued upward trend in data revenue
 Margins slightly better Y/Y due to higher revenue that was partially offset by higher network & billing costs, interconnection and
termination costs.
 Capex spending focused on network expansion
(1)
Subscribers and market share data as per statistic published by the Ministry of Information and Technology
26
Pakistan: Turnaround in net mobile subscriber growth
Subscribers (m)
Revenue (AED m) / EBITDA Margin
26.3
4,719
22.8
24.0
CAPEX (AED m) & CAPEX/Revenue Ratio (%)
2,965
4,236
63%
29%
1,101
28%
1,040
28%
991
40%
33%
27%
30%
438
3%
Q4'14
Q3'15
Q4'15
Q4'14
Q3'15
Q4'15
Revenue
FY'14
FY'15
Q4'14
EBITDA %
32%
21%
218
Q3'15
CAPEX
37%
1,028
24%
362
Q4'15
FY'14
FY'15
CAPEX/Revenue
Highlights
 Subscriber growth Y/Y impacted by regulatory mandated biometric verification measures;
― partial recovery of lost SIM during Q4’15
 Revenue growth Y/Y impacted by subscriber loss in mobile segment, price competition in international and mobile segments
― Maintained growth in data services due to an increase in broadband revenue driven by growth in DSL and EVO.
 EBITDA margin improved Y/Y due to lower staff costs and network costs
 Capex spending is lower than prior year that includes 3G/2G license acquisition and renewal and rollout of 3G network.
27
Nigeria: Slow down in subscriber growth due to compliance
with regulatory requirements
Revenue (AED m) / EBITDA Margin
Subscribers (m)
4,343
23.5
CAPEX (AED m) & CAPEX/Revenue Ratio (%)
1,480
4,230
22.2
21.1
1,114
32%
1,114
16%
Q4'14
Q3'15
Q4'15
Q4'14
1,057
12%
Q3'15
1,106
545
15%
24%
Q4'15
Revenue
18%
16%
462
42%
52%
395
34%
26%
36%
FY'14
FY'15
EBITDA %
Q4'14
Q3'15
Q4'15
CAPEX
FY'14
FY'15
CAPEX/Revenue
Highlights
 Subscriber growth in Q4 is impacted by strict compliance with the regulatory mandated registration process
 Strong revenue growth in local currency of 15% in Q4’15 and 17% on annual basis
 Improvement in EBITDA level as well as higher revenue growth trend
 Higher EBITDA level Y/Y due to higher revenue, resulting in higher EBITDA margin
 Lower capex spend due to the tower sales and leaseback transaction
28
2016 Outlook:
Financial Objective
Revenue Growth
EBITDA Margin
CAPEX / Revenue Ratio
(1)
Outlook 2016
[in AED]
Outlook 2016
[with constant
currencies(1)]
stable
Low single digit
around 48% - 50%
around 18%
Assuming monthly average forex rates against AED during the year 2016 stay the same as in 2015.
29
3. Etisalat UAE Operations
Saleh Abdulla Alabdooli
Chief Executive Officer
Etisalat UAE
Agenda
 Introduction
 Financial Review
 Commercial & Operational Review
 Summary & Outlook
31
Etisalat UAE’s 2015 Strategy was a growth strategy with focus
on Excellence as a natural evolution of a successful turnaround
Target
position
The leading integrated operator in UAE
Strategic
Goals
1
Strategy
Pillars
Deliver attractive returns to
shareholders while investing
in the company’s long-term
future
Be the best experience
provider in the UAE
2
Lead in
core
business
3
Win in ICT
4
Deliver an
excellent
customer
experience
Support UAE development
agenda and continue to be
socially responsible
5
Preferred
brand
6
Innovation
Employer
of choice
32
We cascaded such strategy into every organizational block &
delivered a well earned, premeditated success that was
manifested in solid financial & operational results
Target
positio
n
The leading integrated operator in UAE
All Segments, All Services, All Aspects of Life…
2
Lead in
core
business
3
Win in ICT
4
Deliver an
excellent
customer
experience
Support UAE development agenda and
continue to be socially responsible
5
Preferred
brand
6
Innovation
Employer
of choice
2015 Strategy: “Growth with focused
excellence”
Unparalleled focus on differentiators that
will drive future growth, and above all
Excellence in Customer Experience
1
Pillars
1
5 Year Strategy
Pillars
Deliver attractive returns to
shareholders while investing in the
company’s long-term future
Be the best experience provider in the
UAE
2
Lead in core
business
3
4
Deliver an
excellent CE
Win in ICT
1
New digital
services
Roaming
experience
Roaming
experience
6
e-life
transforma
tion
e-life
transforma
tion
Employer of
choice
Re-position
brand
5
Stimulate innovation
Business segment transformation
8
9
6
Innovation
Design E2E customer journey
4
7
5
Preferred
brand
2
3
2015 strategy programs
Strate
gic
Goals
Manage regulatory landscape
10
Multi-channel transformation
CCC
transformat
ion
11
Network transformation
16
Right people
12
IT-as-an-enabler
17
Design culture
13
Outsourcing strategy
14
Quality enhancement
15
E2E supply chain optimization
Majority of
programs
Impact the CE
2015 Programs & Special assignments
Enhance customer
communication
Review and fix all communication
messages sent to customers, and
ensure compliance with regulation
requirements
Clear complaints backlog
Clear backlog complaints & ensure
resolution of new complaints are
within the pre-defined timelines
Reduce billing complaints
Upgrade all System and Application
components related to Billing
Processing to ensure the timely
delivery of Bills and Content Accuracy
Development of frontline
staff
First Call Resolution for all
channels
Address all frontline staff
requirements, and equip them with
required training, capabilities and
empowerment to support Customers’
requirements
Equip all frontline staff with the
required tools to address customers’
issues accurately from the first time
Resolve top 5 complaints
root causes
Simplify Order Interface
Attend to the Top 5 Complaints
received from Customers, analyze and
fix their root causes to ensure
customer satisfaction
Structured communication
plan / advocates
Address Communication on various
Social Media channels, aiming to raise
awareness, and proactively attend
their issues and complaints
Simplify the Sales Screens for various
Mobile Product and Service aiming to
reducing the “Waiting and Service”
Time for the customers
Billing Credit & Collection
Review and fix the Billing and Dunning
cycles for Enterprise, and SMB
accounts to enhance their Customer
Experience and speed the collection
process
2015 Customer Experience Transformation
33
2015 Full Year Highlights
Financial Performance
Strategic Progress
• Strong delivery of results across key financial metrics
• Strong performance of the subscriber base
evolution both in mobile and fixed businesses
o +6% revenue growth, driven by growth across all
segments and major business lines
o +9% EBITDA growth, driven by strong top-line
performance and disciplined cost management
o Strong Net Profit margin performance at 25.5%.
• Consolidation of the growth turnaround journey
which started in 2013
o Cumulative revenue growth of +27% in three years,
CAGR +8%
• Strong delivery of cash-flow driving healthy ROI on
capital investments
o Focus on data, ICT and Digital services delivering
growth and ensuring return on LTE, FTTH and Digital
infrastructure investments
o +7.0% YoY growth of mobile subs to 9.7 million.
Growth captured through optimal market share
gains, based on segmented offers and approaches,
including the launch of New Visitor Pack targeting
Tourists to UAE sold through various entry points.
o +12.0% YoY increase of eLife FTTH services
subscriptions
• Positive development of customer value across all
services with adoption of segmented
offers/bundles
o Strong uptake of a new generation of “all inclusive”
Postpaid plans driving Prepaid migrations, adoption
of data services, and enhancing customer lifetime
value to Etisalat.
o eLife boosted by new content-rich bundles
o Successful introduction of Business Quick Start
package targeting SMB segment
34
Agenda
 Introduction
 Financial Review
 Commercial & Operational Review
 Summary & Outlook
35
Key operational and financial highlights of 2015
Q4’14
Q3’15
Q4’15
QoQ
Growth
YoY
Growth
FY’14
FY’15
YoY
Growth
Subs(1) (m)
11.0
11.6
11.6
+0%
+6%
11.0
11.6
+6%
Revenue (AED m)
6,978
7,168
6,906
-4%
-1%
27,095
28,774
+6%
EBITDA (AED m)
3,531
4,138
3,886
-6%
+10%
14,957
16,279
+9%
EBITDA Margin
51%
58%
56%
-1pp
+6pp
55%
57%
+1pp
Net Profit
2,239
1,825
1,828
+0%
-18%
7,309
7,325
+0%
Net Profit Margin
32%
25%
26%
+1pp
-6pp
27%
25%
-2pp
Highlights
 Maintained strong subscriber growth in mobile and e-Life segments;
 Revenue growth mainly attributed to growth in mobile, fixed broadband and ICT solutions
- Revenue growth Q/Q and vs. Q4’14 was impacted by certain one-offs. Normalized revenue growth is +3% and +6%
respectively;
- Normalized FY’15 revenue growth before one-offs is +8%;
 Higher EBITDA level Y/Y on account of revenue growth and lower costs, resulting in better EBITDA margin;
 Strong Net Profit margin performance in 2015 at 25.5%.
(1)
Subscriber numbers calculated as aggregate number of GSM, fixed, fixed broadband and eLife lines generating revenue during the last 90 days.
36
2015 is another successful year for Etisalat UAE, with YoY
growth in revenue of 6% and EBITDA of 9%
Revenues
EBITDA
AED Billion
AED Billion
+6%
27.1
2014
% of Revenues
+9%
28.8
Net Profit
AED Billions
% of Revenues
+0.2%
16.3
7.3
55.2%
56.6%
27.0%
2014
2015
2014
7.3
15.0
2015
 Sustained mobile revenue growth
with strong growth in subscribers
and data services;
 Strong fixed revenue growth through
improved eLife content offerings;
 EBITDA growth and margin
expansion was the result of
strong top line growth coupled
with successful cost optimization
efforts.
25.5%
2015
 Strong Net Profit margin
performance at 25.5%.
 Revenue diversification into adjacent
and solutions oriented services
continues at a strong pace resulting
to increased ICT & Digital revenues.
37
A robust growth trend continues since our turn around
journey began in 2013
Etisalat UAE Net Revenues
AED Billion
+6%
+9%
-5%
24.3
2010
+9%
-1%
23.0
22.7
2011
2012
28.8
27.1
24.8
2013
2014
2015
38
Positive growth across all segments and services driven
by data services and segmented offerings
Net Revenue Growth per Segment
Net Revenue Growth per Business Line
AED Billion
AED Billion
27%
13%
52%
45%
28%
35%
2014
Consumer
Business
Carrier &
Wholesale
2015
2014
Mobile
Fixed
Wholesale
& Others
2015
39
Agenda
 Introduction
 Financial Review
 Commercial & Operational Review
 Summary & Outlook
40
Mobile business growth is being sustained by a healthy
subscriber growth and tangible market share gains…
Performance
Active Mobile Subscribers
 Strong mobile subscriber growth (+7.1% YoY),
despite the already very high penetration rate
Million
+7.1%
7.1
9.7
9.0
8.4
 Growth captured though optimal market share gains,
based on segmented offers, and reinforcement of our
distribution and retail presence
 Significant development on prepaid engagement levels
with the “Deal of the Day” and price perception campaigns
2012
2013
2014
2015
Mobile Market Share
+1.3 p.p.
53.8%
+0.4 p.p.
55.2%
55.6%
52.3%
2012
 Strong improvement in Customer Experience (lower
reported customer effort) and adoption of digital
channels (e.g., app)
Priorities
Percentage
+1.6 p.p.
 Adoption of “all inclusive” postpaid plans continues to
drive prepaid migrations and adoption of data services
 Continue to leverage on the segmented approach, to
capture incremental growth while minimising price erosion
 Optimise the portfolio value-for-money balance, by
tapping into smart re-pricing opportunities
 Continue to drive the migrations of customers to ARPU
enhancing offers
2013
2014
2015
 Increase penetration and monetisation of data
services, while adjusting the devices portfolio to the
current industry context
41
.. in addition to value growth, driven by postpaid strong growth
& the increased monetisation/engagement of the its base
Postpaid Mobile Subscribers
Million. Active 90 days
+17.4%
2012
2013
2014
2015
Prepaid Mobile Subscribers
Million. Active 90 days
+5.1%
2012
2013
2014
2015
42
Data & ICT continue to be key focus areas, with new offers
being decisive to monetise the huge traffic growth & ensure LTE
ROI…
Mobile Data as % of Mobile Revenues
Percentage
+2.0 p.p.
2014
2015
Mobile Data Traffic
2G
3G
4G
Average daily traffic. TB/day
250
+117%
200
150
100
50
0
Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec15 15 15 15 15 15 15 15 15 15 15 15
43
.. in addition to the fact that verticals in digital solutions and
ICT are the new sources of growth in our industry
Key Areas & Industries in Digital & ICT
Enterprise Revenue
12%
ICT
44
Our focus on ICT and digital enablement is progressively
delivering new products in the market
Future Communications & Cloud Services
M2M, IoT & Digital Marketing
Cloud Computing & Advanced Managed Services
45
Devices continue to be a driver for the adoption of data, & our
portfolio is constantly updated to reflect recent trends &
NON-EXHAUSTIVE
demand
46
Data revenues growth is also supported by a remarkable
evolution of eLife bundles & advanced solutions for business
customers
eLife Subscribers
Performance
Million
 Strong growth of eLife bundles (+13% YoY),
reinforcing the UAE as the #1 market in fibre adoption
+12.8%
+69%
 Continued adoption of 3Play and improvement
of ARPU driven by the revamp of offerings (new
content bundles and 2x speed upgrade)
 Sharper focus on the SMB opportunity with all-in-one
solutions and ramping up of demand for managed
services and other advanced ICT solutions
2012
2013
2014
2015
Managed Services Links Delivered in 2015
Number of links
+410%
Priorities
 Continue to expand in terms of ARPU enhancement
by continue to push 3Play and the upgrade/up-sell
of premium content and higher broadband tiers
 Maintain strong development cycle for ICT
solutions and other innovations in the digital
space, in line with Etisalat vision of a digital
converged player
Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec15 15 15 15 15 15 15 15 15 15 15 15
47
In eLife, the focus on content-rich bundles and the extension
of the entertainment ecosystem is driving sustained growth
48
Etisalat continued to modernize its mobile network to improve
services quality & efficiency with more planned investments in
2016
8K+
Total Cumulative Mobile Modernized Sites
5K+
Total Mobile Modernized sites in 2015
2K+
Total Cumulative New sites
93%
LTE Coverage in populated areas
49
Hence placing us amongst the top world Mobile Broadband
providers
Etisalat UAE
Download throughput percentage > 10 Mbps
80
75
70
China Op1
France Op1 Singapore Op1
Japn Op1
France Op2 du
65
60
55
Japan Op2
Germany Op1
50
45
Hong Kong Op1
UK Op1
USA Op1
Oman Op2 Oman Op1
40
35
Turkey Op1
Turkey Op2
30
25
Saudi Arabia Op 2
20
15
10
5
Iran Op2
0
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95 100
Download throughput percentage > 1 Mbps
Source: OOKLA (Ericsson)
The Horizontal Axis shows the percentage of throughput provided to customers who are on packages that are 1 Mbps or higher (i.e. majority of the customers)
The Vertical Axis shows the percentage of throughput provided to customers who are on packages that are more than 10 Mbps, which is a subset of the horizontal axis
50
While in fixed, we are maintaining the number one worldwide
leading position in in FTTH network penetration
86.4%
FTTH nationwide
coverage
1.64 M
Home Pass Coverage
across all UAE
51
Agenda
 Introduction
 Financial Review
 Commercial & Operational Review
 Summary & Outlook
52
Moving forward, we foresee our market is transforming into a
digital future – shaped by six major forces…
1
UAE Vision 2021
6
5
Technology revolution
More open competition
Customers going digital
Digital
Future
Core will still drive value
2
3
Growth in digital economy
4
53
.. but at the same time, we face strong immediate challenges
4
Disruptive competition
New OTT and Digital
Economy player
entry
Regulatory impact
e.g. Bitstream,
NRI2), GCC roaming
& infrastructure sharing
1
Market
Challenges
Strong WiFi usage
3
Threatening core
revenues e.g. data
and roaming
NRI = Network Readiness Index (as part of UAE Vision 2021 Ambition and Goals)
Economic
slow-down
Effecting spending
in the UAE
2
54
In line with the market evolution, we have set a bold, new
vision for Etisalat UAE which is supported by revised corporate
strategy with refined goals, new values & strategic imperatives
ETISALAT UAE VISION STATEMENT
The digital future will:
- re-shape the lives of consumers,
- accelerate the economic growth of
businesses, and
Drive the Digital Future
- enhance the competitiveness of the
country
to empower societies
Etisalat will drive this digital future to
empower societies thus inspiring
everyone to fully maximize their true
potential.
55
Key messages and 2016 strategic outlook

Strong delivery of results in 2015:
– YoY growth in revenue of 6% and of 9% in EBITDA
– Focused commercial activities and investments in both mobile and fixed networks

In 2016, we will pave the way for a digital future as the market leader and UAE’s main
telecom & ICT enabler, we will:
– Continue to lead in core business despite market liberalization, as we strongly believe such act
will bring more opportunities to etisalat than threats
– Leverage our best of breed network to enable UAE’s digital and ICT agenda, in addition to
delivering an excellent Customer, which will mandate more investments and adoption of new
and emergent technologies
– Foster innovation and invest more in smart platforms and big data
– And we will continue to enhance operational efficiency and building capability, to become
more agile and to continue to be the employer of choice
56
Q&A
57
4. Mobily Operations
Ahmad Farroukh
Chief Executive Officer
Mobily
Key operational and financial highlights of 2015
+3%
13,995
14,423
-47%
+31%
2,246
6,400
3,400
2,941
+31%
-1,576
Revenue
EBITDA
-1,090
Net Results
Capex
2014
2015
59
Overview of the Telecom market
Market trends
• Developed market with
a penetration rate
around 170%
Competitive
dynamics
• Market with 3 players
• Market share
(revenue)
• Shrinking voice service
and increasing Data
• STC 72%* - STC
has a dominant
position
• Expected single digit
growth
• mobily 19%* mobily is the
challenger
• Technologically
advanced
Regulatory
environment
• Highly Regulated.
• new market changing
regulations
• Interconnection fees
• Biometric fingerprint
• Zain 9%*
• 2 MNVOs entered
the market
* Company’s estimates based on disclosed information
60
Management focus during 2015 / Key developments
Stabilizing the company after the challenging situation
during 2014:
•
•
•
•
•
Restatement of 2014 and Q1-2015 financials.
Managed and concluded the CMA investigation.
Change of leadership.
Managing the transformation period.
Rebuilding the trust with the stakeholders.
61
Strategic Initiative 2016
• Boost Data Profitability
• Harmonies data efficiency
• Increase Value Share in Mobile Data
• Increase network efficiency
• Product & Pricing Revamp
Key
Propositions
• Postpaid & Prepaid (Consumer Unit & Business Unit)
• Enterprise unit Product & Pricing Revamp
• Data Center Services Revamp
• Cloud Services Revamp
• Fixed Services (basic, advanced and int’l)
Enhancement
• Develop the SME strategy.
• Deploy Mega projects (helath, smart cities)
• Leverage Customer Experience
62
Strategic Initiative 2016
Monetize
FTTH
Rationalize
CAPEX
Improve
Efficiency
• Stimulate FTTH uptake in coverage areas
• Enhance sales, systems & execution
capabilities
• Enhance Operational Excellence (i.e. Processes
and Systems)
• Implement effective CAPEX governance
• Improve network CAPEX planning
• Network / IT Optimization & Simplification
• Improve OPEX Management
• Seek operational efficiency across the company
• Standardize and increase disclosure
• Optimize Structure
• Digitize Operations (customer & internal facing)
63
Strategic Initiative 2016
• Build people capabilities
• Effective Leadership Development
Engage and
Retain
• Engage Staff
• Employee Engagement Activities
• Retain talents and critical staff
• Enhance Retention Plans & reward systems.
64
Mobily Network Infrastructure
Commercial
Data Centers (DC)
Wireless Network
2G
3G
4G
Sites
9,301
8,071
6,754
Saudi National
Fiber Network
FTTH Network
8 Rings
Fiber
12,600 Kms
Internet GW
Technical
Buildings (TB)
Metro Network
Fiber 24,086 Km
65
Mobile network coverage
Tech
No. of Sites
Population
Coverage %
2G
10,167
99.42
3G
9,021
97
4G FDD
2,714
78
4GE TDD
5,215
67
99.42
97
78
67
2G
3G
4G FDD
4GE TDD
Population Coverage
66
Fiber network coverage
•
Over 24,000 Km of Metropolitan & FTTH Fiber Network to support the
(BB) over different cities.
•
Saudi National Fiber Network (SNFN) covers over 19,000 Km of fiber
connecting with different cities.
67
Way forward
Back to
basics
Implement a
culture of
operational
excellence.
Rebuild trust
with investors
and creditors
68
Q&A
Mobily’s Investor Relations
69
5. Etisalat Misr Operations
Hazem Metwally
Chief Executive Officer
Etisalat Misr
The Egyptian market over the past several years proved to be
challenging, yet still holding some positive promise for the
future
Challenging market
conditions with fierce
… However, the long term bears some good promise
competition
Two International
competitors with a
government fixed
incumbent
Spectrum
scarcity
Currency
Devaluation by
~9% during 2015,
affected by low net
international reserve
current balance of
~USD16.5 bn
Egypt ranks #1 in Population among Arab countries (With
~50% of the population less than 23 years of age) while
holding GDP ~311Bn USD
Suez canal axis development project that aims for expanding
the Suez Canal region’s role as a global, industrial, and logistics
center and announced potential investments would play a
role in regaining the trust in Economic recovery
Government is stabilizing political environment with
Parliamentary Elections in Oct/Nov 2015
The discovery of the new Natural Gas field announced in
August 2015, would help Egypt to self sustain it’s demand
Egypt’s Credit rating in 2015 has witnessed an upward trend
due to ongoing commitment to fiscal & economic reform:
• Moody's |at B3 from Caa1 with a stable outlook
• S&P | at B- stable outlook
71
The Egyptian market over the past several years proved to be
challenging, yet still holding positive promise for the future 2/2
Egypt’s economic indicators
%
GDP real growth rate
%
Population and unemployment
Millions, %
Unemplyment rate
CAGR (2015 – ’20)
Inflation rate
%
Population
-7%
+4%
4.2% 4.3%
4.5%
4.7%
5.0% 5.0%
13.2%
12.9%
13.4%
11.7%
12.4%
10.1%
9.8%
9.8%
10.9%
10.4%
-9%
10.5%
9.7%
9.2%
8.8%
7.4%
6.3%
2.1% 2.2%
88
90
92
94
97
99
101
2013 ’14
’15
’16
’17
’18
’19
’20
86
2013 ’14
’15
’16
’17
’18
’19
’20
GDP growth nearly doubling with
real growth after suffering a
decline from 2011 to 2014 as a
reflection of witnessed political and
economic reforms
Population is growing at 2% per
year, while, unemployment
percentage is declining by 1%
per year as a direct impact for
potential economic growth
aspirations
Sources: Central Bank of Egypt| CAPMAS for Historical data
IMF-Oct 15: for future data
2013 ’14
’15
’16
’17
’18
’19
’20
A• In the short-term, inflation pressure
impacting our OpEx negatively
during 2016
B• Inflation rate has a positive
outlook in the long-term and
expected to decrease at a CAGR
of ~9% to reach 6.3% in ‘20
72
The regulator places more market controls and aiming to
enhance data reliability
Ambiguity in the
regulator’s plan
LTE is on the
regulator’s
agenda, late
2016 early
2017
Acquiring additional
spectrum being
negotiated with
the regulator
Potential 4th
mobile license to
be offered to
Telecom Egypt
Regulator is aiming to control the market … EM is
working on managing those pressures
The Regulatory authority (NTRA) trying to attract more
investment in the Telecom sector through license
offerings;
 4G license, is expected late 2016, early 2017
 4th mobile license (Telecom Egypt)
Etisalat Misr is in need for spectrum to cater for data
future growth. Hence, we are currently negotiating with
the regulator for acquiring additional spectrum
Regulatory newly imposed regulations:
 Gray termination control
 New activation sales process
 Prepaid Customer data information cleansing
 Absence of proper control on the government’s
incumbent (Telecom Egypt) monopolistic practices
(for the fixed infrastructure and int’l terminations)

Lack of enforced interconnection agreement
among market players
73
The Egyptian market still holds growth opportunities;
however competition increasing efforts to regain momentum
Opportunity areas
Telecom to sustain strong
growth (~6% p.a.)
outpacing overall GDP and
many other industries
Competition positioning
Showing commitment to the Market; massive
Investment in CapEx over 2 years to
modernize and extend coverage
With ~50% of the population
less than 23 years of age, The
Youth remains to be
Etisalat’s heartland
Massive Advertising campaigns in 12
months
(15 TVCs, 22 Celebrities + 5 Music Bands)
Data traffic explosion requires
more carriers with 4G launch
on horizon, limited fiber and
only ~20% DSL penetration
Orange increased ownership in Mobinil with
new branding to “Orange”, in March
2016
Enterprise and High
Value Market with the
Economic growth, further
opportunity lies ahead in
these segments
Pressuring to become an integrated
telecom operator
74
Competitive landscape
2015 figures
Operator
Orange,
launched
1998
Market
Share, %
Revenue
EGP bn
Value
Share, %
EBITDA
Margin, %
32%
10.8b
30.6%
31%
VFE,
Launched
1998
37%
14.6b
41.7%
44%
Etisalat,
Launched
2007
31%
9.7b
27.7%
37%
SOURCE: Operator Quarterly/Annual Releases, revenues based on standalone results
1 VFE revenue including one-off adjustment in Q1’15 of ~EGP793 mn
75
Story of success…. successfully capturing ~80% of total
market revenue growth while narrowing the revenue gap with
the competition
Etisalat
Etisalat revenue
Rest of market
share, %
Etisalat achieved its 2015 ambitious targets,
Egypt mobile telecom revenues, EGP
Billions
2008
21.4
2009
22.8
4.0 26.9
15%
2010
22.3
6.4 28.8
22%
2011
21.7
7.5 29.2
26%
2012
22.3
8.5 30.9
28%
2013
23.0
9.1
32.1
28%
2014
23.6
9.5
33.1
29%
2015
24.6
CAGR
2%
1.8 23.2
Mobile revenue gap vs. Orange
EGP Billions
9.7
8%
34.4
+8.2
1.8 10.0
2008
Closed Gap
+1.0
9.7
10.8
87%
2015
Mobile revenue gap vs. VFE1,
EGP Billions
28%
27%
SOURCE: Operator Quarterly/Annual Releases, revenues based on standalone results
1 VFE revenue excluding one-off adjustment in Q1’15 of ~EGP793 mn
+9.5
+4.1
13.9
1.8 11.4
2008
9.7
57%
2015
76
Etisalat Misr operating model proved successful to drive
remarkable performance
Etisalat
Misr
market
position
 EM operates in one of the most competitive market in the MENA region, EM
succeeded in capturing ~ 31% of market subscribers
 EM revenues boost YOY through 1) data revenues as a main driver for growth
showing growing contribution trend of 20% and 25% in 2014 and 2015
respectively; 2) efficient pricing strategy, EM acquired ~ 28% of total
telecom mobile market revenues that reached EGP ~35 bn in 2015
 EM ARPU improved YOY moving from EGP ~21.5 in 2014 to EGP ~24 in
2015 narrowing the gap with the Egyptian market ARPU of EGP ~26,
(prepaid segment remains the main driver for the Egyptian telecom market).
Operational
KPIs
 Despite the witnessed increase in network costs, higher inflation rates, and
the competitiveness of the market , EM succeeded to achieve EBITDA
margin of ~37% in 2015.
 EM managed its CapEx spending efficiently during 2015 with an investments of
EGP ~ 1.9 bn.`
Profitability
 EM balanced its operations between maintaining strong market position,
achieve it’s target profits and dividends yield to shareholders
 EM started distributing dividends of EGP 350 mn on 2014 profits and
expected to increase the distributed amount to EGP 400 mn on 2015
profits subject to AGM approval
77
Business driven network focuses on customer centricity
Delivered through a focused customer centric strategy
4G
Sites
7000
Network
coverage
99% 2G/3G population coverage
Sites including ~ 6000 3G
sites
Network
investment
~EGP13 Bn
1st
advanced
Network
 First to launch 3G network in the Egyptian market in
LTE
readiness
Ready to deploy the 1st
2017 subject to licensing
Investment in Infra
structure in 9 years
2007
 Launched HSPA+ network in Egypt in 2009
 Only mobile operator in Egypt owning Fiber backbone and
International gateway
LTE network in Egypt in
78
Etisalat has built it's strong market equity and a flexible
operational model to cater for changes
Etisalat is perceived as the Young, Fresh, Advanced, Innovative,
and trustworthy brand for the Egyptian consumer with unique
market leading propositions
1
With ~ 7000 sites (from which ~6000 are 3G) and an
advanced IP backbone, Etisalat has built a strong network
servicing ~30m subs / 10m broadband customers, and
~200TB every day! All of this despite scarce spectrum, lack of
fuel, and frequent security challenges
2
3
4
A foundation of systems / analytics, from top notch billing
systems to IN, Enterprise applications, CRM, geo-marketing and
data mining capabilities, to unlock a tremendous opportunity in a
country with limited “business” data


5
Efficient organization delivering ~ 28% market value share
and ~37% EBITDA margin.
Number 2 in EBITDA and profitability
Young talented ambitious individuals eager to be the best mobile
operator in Egypt
79
Etisalat Misr 2016 focus and beyond
To be delivered through a focused Strategy in the upcoming 5 Years
Creating Distinct
Propositions and
Customer
Experience
Differentiate through unique and innovative proposition and
deep focus on customer demand across all touch points
Transforming
Operational
model
Network leadership, readiness for LTE, Cost effective
product development and channel management…all while
maintaining the focus on Customer Profitability
Managing
Shareholder
Value
Continue to reward shareholders with dividends
distribution, EGP 350mn for 2014 profits and EGP 400mn for
2015 profits with an ambitious plan to increase YOY. Improve
costs structure and Smart investment to sustain network
position
Agile
Organization
Continue to invest in human capital whilst reviewing
processes / activities to streamline organization and go-tomarket
Continue lobbying with Regulator & Government
stakeholders for favorable outcome on issues related to
spectrum, licenses and pricing
Engaging
with External
Environment
80
High hopes and aspirations for the future
Aspirations
1
Remain the fastest growing Egyptian operator, surpassing the
EGP 13 Billion revenue mark within 5 years building on data
revenues as the growth engine with aspiration to contribute to
28% in 2016 and 40% from total revenue by 2020
2
Be the leading operator of choice and maintain Leadership on
Customer Satisfaction
3
Increasing shareholders value by focusing on profitability
accompanied by progressive dividends distribution
4
Be the number 2 player, in Consumer & Enterprise, and
narrow the gap with number 1 player
5
Develop Enterprise Business Revenue to reach ~1.5Bn EGP
through 5 years while building our capability to provide ICT
services
81
Q&A
82
6. Closing Remarks
Hatem Dowidar
Acting Chief Executive Officer
Etisalat Group
Etisalat Group Investor Relations
Email: [email protected]
Website:
www.etisalat.com/en/ir/index.jspr
84