PTCL Investor Call

Financial results for Q1 2018

16th April, 2018

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Disclaimer

Pakistan Telecommunications Company Limited (PTCL) and its subsidiaries have prepared this 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 may include some “forward-looking statements”. Such forward looking statements are not guarantees of future
performance and may involve risk of uncertainties. Actual results may differ materially from these forward looking statements.

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Business Overview
Dr. Daniel Ritz
President & Chief Executive Officer
PTCL Group

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PTCL Group

PTCL Group PTCL

• PTCL • Retail
• DSL
• Wireless Data
• Voice
• Ufone • IPTV

• Corporate
• ICT Services
• Ubank • Cloud & Data Services
• Managed Services

• Wholesale
• Others* • Carrier services
• International business

* Other subsidiaries include DVcom and SmartSky

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PTCL Group
4% Topline Growth with Positive Contributions from all Group Opcos

Q1 2018 % Change YoY % Change YoY

Description
Rs. M (Reported) (Like for Like)

Revenue 30,050 4% 4%

EBITDA 10,241 1% 2%

EBITDA Margin 34% -1 p.p -0.6 p.p

Net profit 1,007 -10% 28%

Net Profit Margin 3% -0.5 p.p 1 p.p

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PTCL
PTCL achieves revenue growth after arresting the decline last year

Q1 2018 % Change YoY % Change YoY

Description
Rs. M (Reported) (Like for Like)

Revenue 17,579 1% 1%

EBITDA 5,742 -5% -4%

EBITDA Margin 33% -2 p.p -1.6 p.p

Net profit 1,818 -14% -12%

Net Profit Margin 10% -1.7 p.p -1.6 p.p

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Major milestone achieved - PTCL revenue decline arrested

% Change in revenue over same period last years

2%
1%
0%

-2%

-3%
-4%

-6%

-7%
-8%

-9%
-10%
Q1 2015 Q1 2016 Q1 2017 Q1 2018

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Key Strategic & Operational Highlights

PTCL

• Continued network transformation project - 31 out of top 100 local exchanges upgraded
• Migrated EVO (CDMA) subscribers to Charji (LTE) with free device swap
• Expanded range of partnerships to include Netflix (first in the region) and Microsoft (Cloud Services)

Ufone

• Subscribers growth momentum leading to revenue upside

• Improved network footprint by increasing number of franchises by more than 50% over last 6 months
• Sustained TRI*M score as number 2 operator

Ubank

• Increased branch network to 119 locations especially in rural areas to provide formal banking services to
unbanked population
• Accelerated profitable growth - almost doubled revenue YoY along with significant margin expansion
• Initiated process of automating / digitizing its core lending operations
• Received growth equity injection of PKR 1bn from PTCL to support further expansion

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Financial Overview
Nadeem Khan
Chief Financial Officer
PTCL Group

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PTCL Group Key Financials
Normalized for negative Forex impact Net Profit up by 28%

Revenue (Rs. M) EBITDA & Margin Net Profit & Margin

12,400 50%
3% 1,300 10%
1,119
30,050 45% 1,007
10,400 10,101 10,241 8%
1% 9,492 800
40%
29,190 6%

28,828 8,400 4%
35% 3% 4%
300
35%
34%
33% 30% 2%
6,400
(200) Q1 2017 Q4 2017 Q1 2018 0%
25%

4,400 -2%
20% (700) -4%
-4%

15%
2,400
(1,200) (1,059) -6%

10% Net loss in Q4 due to unwinding

400 of discounted 2G License Liability
5% Rs. 2 B
Q1 2017 Q4 2017 Q1 2018 Q1 2017 Q4 2017 Q1 2018
(1,600) 0%

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 PTCL Group – Revenue Evolution YoY
Revenue growth of 4% contributed by all Group Opcos

4% Rs. M
94% 30,050 DV Com
102 975 51 Ubank
4% 473 Ufone
1% 541 PTCL
28,828 Eliminations
107
502 51 13,057

12,516

17,579
17,473

0 -1,714 -1,612
Q1 2017 PTCL Ufone Ubank Eliminations Q1 2018

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PTCL Group – EBITDA Evolution YoY
PTCL takes upfront SAC cost to convert subscribers to LTE. Seasonal marketing activities put pressure on
EBITDA
1% Rs. M
3136%
10,241 Eliminations

10,101
-5% 8% 138 141 13 DV Com

13 44 44 Ubank
3 Ufone
318 320
PTCL
4,301
3,981

6,060 5,742

Q1 2017 PTCL Ufone Ubank Q1 2018

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PTCL Key Financials
Lower Net profit driven by lower Non-operating Income due to VSS, Pension Trust funding and CAPEX
payments during last year

Revenue (Rs. M) EBITDA & EBITDA Margin Net Profit & Margin
4% 7,000 50%

-3%
6,060 45%
6,000 5,742
17,473 17,579
16,892 5,323 40%
2,111 20%

5,000
35%
2,000 1,902 18%
1,818
35% 16%
33% 30%
4,000 32%
14%
1,500
12%
25%
11% 12%
10%
3,000
20% 10%
1,000
8%
15%
2,000
6%
10%
500
4%
1,000
5%
2%

- 0% - 0%

Q1 2017 Q4 2017 Q1 2018 Q1 2017 Q4 2017 Q1 2018 Q1 2017 Q4 2017 Q1 2018

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PTCL – Revenue Evolution YoY
Revenue growth by 1% YoY for the first time since Q2 2014
Rs. M
1%

244 250
17,579
17,473 112

Q1 2017 Retail Corporate Wholesale Q1 2018

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DSL Revenue
Strong DSL Revenue Growth Driven by Network Transformation

Avg. Subscribers (‘000) ARPU (Rs.) Revenue (Rs. M)

4% 5% 9%
1,416 1,503 6,383
1,361 1,431
5,844

Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018

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Charji Revenue (LTE)
LTE Delivering in Key Markets

Avg. Subscribers (‘000) ARPU (Rs.) Revenue (Rs. M)

85% 2% 89%
174 985 1,007 525

94 278

Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018

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Corporate Revenue
Accelerating Growth by Offering New Services
Rs. M
17%
25
61 1,703
91

189

1,459

Q1 2017 Managed Leased Lines Cloud Voice Q1 2018

Services & Services &
IP Bandwidth Others

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PTCL – EBITDA Evolution YoY
PTCL takes upfront SAC Cost to convert subscribers to LTE. Seasonal marketing activities put pressure
on EBITDA
Rs. M
-5%
6,060 107
256

169 5,742

Q1 2017 Revenue Cost of Sales Opex Q1 2018

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PTCL – Net Profit Evolution YoY
Lower Net profit driven by lower Non-operating Income due to VSS, Pension Trust funding
and CAPEX payments during last year
Rs. M
-14%
2,111

318
1,818
23
181 184

Q1 2017 EBITDA Dep & Non-operating Taxation Q1 2018

Amortization Income

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Balance Sheet & Cash flow
Strong Unleveraged Balance Sheet

Balance Sheet Cash Flow Statement

Dec-17 Mar-18 Mar-17 Mar-18
Description Description
Rs Million Rs Million
Non Current Assets 116,098 116,315 Cash generated from operations 8,530 6,491
Cash & Cash Equivalents 19,851 21,204 Employees retirement benefits paid (228) (242)
Current Assets 71,250 73,463 Payment of voluntary separation scheme (4,652) (3)
Total Assets 187,348 189,778 Cash inflows from operating activities 1,134 4,689
Share capital 51,000 51,000 Capital expenditure (2,832) (1,651)
Reserves 34,102 35,936 Acquisition of intangible assets (51) (121)
Equity 85,102 86,936 Long term loans and advances (880) (866)
Employees retirement benefits 23,504 24,153 Long term investment in Ubank - (1,000)
Deferred government grants 8,060 7,942 Cash Inflow/(outflow) from investing activities (2,578) (251)
Non-current liabilities 39,263 39,464 Dividend paid (5) (3)
Current liabilities 62,984 63,378 Net inc/(dec) in cash and cash equivalents (1,448) 4,434
Total Liabilities 102,247 102,842 Opening Cash and cash equivalents 5,902 16,770
Total Liabilities & Equity 187,348 189,778 Closing Cash and cash equivalents 4,454 21,204
21204499
Short term investment in Q 1 17 of Rs. 23 B (not included in above Cash & Cash
equivalent - maturity > 3 months

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Dividend yield
Last five years ranges from 5.8% to 12.1%

Dividend yield
14%
12.1%
12% 10.9%

10%
7.7%
8% 7.0%
5.8%
6%

4%

2%

0%
2013 2014 2015 2016 2017

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Summary & Conclusion
Dr. Daniel Ritz
President & Chief Executive Officer
PTCL Group

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Summary & Conclusion

• PTCL Group has returned to revenue growth with all three operating companies contributing
• Net profit of PTCL group up significantly year-over-year on constant currency basis
• PTCL revenue decline has been arrested, key growth drivers are DSL, Charji and Corporate
• Phasing of SAC and marketing spend weighing on PTCL quarterly EBITDA, net profit down year-over year due to
lower non-operating income
• PTCL share offering attractive dividend yield of 8%

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Questions & Answers

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Investor Relations

PTCL Investor Relations

Email: Amir.Siddiqi@ptcl.net.pk

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THANK YOU

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