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FY 2010

liquidity. 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. or the contents otherwise divulged. The information set out herein is subject to updating. accuracy. or otherwise arising in connection with this document. The Company cautions you that forward looking statements are not guarantees of future performance and that its actual results of operations. or be relied upon in connection with. None of the Company or any of their respective affiliates. strategies. statements regarding the Company’s intentions. In addition. and the industry in which the Company operates. revision. These forward-looking statements include all matters that are not historical facts. any shares of the Company and neither it nor any part of it shall form the basis of. and no reliance should be placed on. financial condition. This presentation has been made to you solely for your information and background and is subject to amendment. is made as to. verification and amendment and such information may change materially. forwardlooking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. even if the Company’s results of operations. directly or indirectly. any contract or commitment whatsoever. This document does not constitute an offer or invitation to sell or issue. By their nature. to any other person (excluding the relevant person’s 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. completeness or correctness of the information or opinions contained herein. 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. or any solicitation of any offer to purchase or subscribe for. completion. the fairness. held in connection with the Company. 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. The Company does not undertake any obligation to review or confirm analysts expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation.Disclaimer This document has been prepared by Telecom Egypt (the “Company”) solely for the use at the analyst/investor presentation. The information contained in this document has not been independently verified and no representation or warranty. express or implied. among other things. growth. those results or developments may not be indicative of results or developments in future periods. . beliefs or current expectations concerning. passed on. prospects. the Company’s results of operations. This presentation (or any part of it) may not be reproduced or redistributed. 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.

FY 2010 .

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80% 49.95% shareholding in Vodafone Egypt Vodafone Egypt reached 43.80 (31/12/2010) Fact Sheet Wholesale Fixed Voice & Mobile Submarine Cable 5 Internet & Data Vodafone Egypt .83 bn Subscribers Tele Density 9.32 bn U$D 1.000 Km of fiber optic cables 44.TE Data TE Data Market Share 63% Source: Bloomberg Penetration (Household) # of Employees (Closing) U$D 1 = EGP 5.72 bn Total Equity EGP 27.87 bn U$D 0.2 bn voice minutes Total Assets EGP 33.57 bn Industry leading profitability margins More than 30.Telecom Egypt At A Glance Fact Sheet The nation’s only fixed-line network   Provides connectivity to all mobile operators Controls 100% of wholesale Internet & Data business Key Statistics FY 2010 Turnover EGP 10.31 bn U$D 0.87% 55.33 mn 11.00 K Full ownership of Egypt’s leading Internet & Data company .78 bn EBITDA EGP 4.20 bn U$D 5.84 bn Has one of the largest fixed-line subscribers base in the MENA region Net Income EGP 3.99 bn U$D 4.

the installation fees & 50 L. and they get: Extra free minutes Extra discount on international calls Residential Customers From May until July TE is offering its residential customers. the installation fees & 50 L.E monthly. for mobile to fixed calls (starts from the first minute). Business Customers: a total discount of 550 L.E.E.Telecom Egypt’s Retail Business Responding To Aggressive Market Competition  Customers can subscribe to (Kalam 12 tariff plan) to get 120 local minutes. 6 Fact Sheet Wholesale Fixed Voice & Mobile Submarine Cable Internet & Data Vodafone Egypt . 1 Defend Voice Revenue  Retention of ARPU customers:  Promotional offers & bundles   Residential Customers: a total discount of 300 L. The offer is applied fro local. They will be billed every 3 months as usual. 80 national minutes & 10 mobile minutes in exchange of the current subscription fees with no additional cost. only 15 Pt.  Interconnection cost reduction to offer more competitive rates    Residential Customers Lowest Minute Rate.  Introduction of triple play services       Lowest rate to mobiles from landline.E. long distance and fixed to mobile calls.E. three months of free minutes and exemption on installation fees. the administrative fees). (500 L.E.E. the administrative fees). Customers Choose the bundle that best fits their needs Starting from 100 L. (250 L. This offer includes current and new customers.

0% 841.0 123.9% 52. WiMAX Demonstration License & Data Center Services.7 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 622.  TE Data and Microsoft is the first of its kind partnership in Egypt and the middle east. Prepaid International Calling Cards (Habayebna) .5% 30. FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2004 FY 2005  Operations in Egypt and Jordan Market Share – ADSL (In EGP Millions) 80% 70% 59.3 501. and the 6th worldwide to provide new innovative services to its customers based on Microsoft Live platform.2 600 500 400 300 200 100 9.2 184.2 60.4 222.5 345.9% 63.5  Extensive marketing infrastructure tailored to focus on residential and business customers.0% 1000 900 800 700 Subscribers Market Share  IP-TV (TE VU).2 424. 625.  TE Data and ART Ramadan TELive service is the first of its kind where ICT and media really merge.Internet and Data – TE Data Internet & Data Revenue Growth (In EGP Millions) Revenue CAGR (2004-2010): 48.2 10% 27.3 92.3 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 0 FY 2004 FY 2005 7 Fact Sheet Wholesale Fixed Voice & Mobile Submarine Cable Internet & Data Vodafone Egypt .7 80.5% 44.0% 60% 50% 40% 30% 20% 26.0% Differentiated Service Offering 883.

053 3.852 3. 32% 39% 39% 42% 48% Percentage of TE’s Total Revenue 8 Fact Sheet Wholesale Fixed Voice & Mobile Submarine Cable Internet & Data Vodafone Egypt . Verizon and TATA).939 3.8% (In EGP Millions)  Mobile Operators 4. including: – Infrastructure and transport – Voice and data services – Collocation and Hosting services  Enables 60 million fixed and mobile subscribers and over one million broadband users.936 4.197 I&W Main Customers Segments  Data Operators  TE Retail  Submarine Cables International Services Portfolio  Offers wide range of international services.Telecom Egypt’s International & Wholesale Growth Main Customers Segments & Service Landscape Wholesale Revenue Growth CAGR (2006-2010): 12. including: – International voice conveyance services – International connectivity and data/IP services FY 2006 FY 2007 FY 2008 FY 2009 FY 2010  Expanded network reach through partnerships with Tier-1 international players ( AT&T. National Services Portfolio  Offers wide range of national services.

CYTA (In USD Millions) Asset Transfer / TEN 3 Enhance Sales Capabilities  Develop sales capabilities and enhance international account management IRU Value / TE Transit Corridor 36 40 50 50 43 Leverage TE national backbone and international infrastructure to support TE international business Total Grand Total 126 219 93 9 Fact Sheet Wholesale Fixed Voice & Mobile Submarine Cable Internet & Data Vodafone Egypt .g. Middle-Eastern and African countries 1 Diversify TE International Service Portfolio  Extend TE’s international service portfolio by developing new value added services  Leverage partnerships with global operators to enhance international brand image 2 Expand TE International Reach  Expand TE international footprint by deploying PoPs and expanding customer base  Identify opportunities for new business development (e.Submarine Cable Opportunity International Customers BU Growth Pillars Position TE as a regional Asia And East Africa gateway to Europe for traffic originating from Asian. TENorth expansion or deployment of new cable system)  Seek partnerships with international carriers to enter new markets Project Contractual Progress # 1 2 3 4 Cable IMEWE Seacom/TATA EIG TE North .

upon recharging. customers enjoy from 3 to 30 free days to any Vodafone Number.8 mn 30.Telecom Egypt’s Position In The Mobile Sector 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. Upon recharging. 10 Fact Sheet Wholesale Fixed Voice & Mobile Submarine Cable Internet & Data Vodafone Egypt . Make 3 min.2bn Solid Financial & Operational Performance in 9M 2010* 36% 51% 1% Increase in total closing customers year-on-year Growth in total voice minutes Revenue increase year-on-year EGP 1. 50% discount on the internet monthly subscription fees. In Ramadan.6 mn 1. Operational Highlights Number of Total Closing Subs Number of Prepaid Subs Number of Postpaid Subs Total Voice Minutes (96%) (4%) 9M 2010 31.7 bn * Vodafone Egypt’s Financial Year ending 31st March .1 bn EGP 1.35 bn contribution to TE’s net profit in FY 2010 Financial Highlights Revenue Net Profit Capex 9M 2010 EGP 9.2mn 43.2 bn EGP 2. customers have a chance to win free calls for a day or month or free SMS’s to all Vodafone numbers. to any mobile or land line and enjoy 5 minutes to any Vodafone number.

FY 2010 .

051 3.804 37% 3.63% EBIT Margin 3.427 2.76% FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 NPAT Growth Profit Before Tax & Minority Interest Margin 3.865 47% 5.59% 9.000 1.64 4.117 9.515 35% 1.051 8.534 2.0% 10.000 CAGR (2006-2010): 8.510 35% 8.72 1.500 1.309 3.87% FY 2008 FY 2009 FY 2010 NPAT Note: All financial figures reported are based on Consolidated financials under Egyptian Accounting Standards NPAT Margin Revenue 12 Income Statement EBITDA Balance Sheet .500 2.000 2.45% 40% 30% 32% 31% 20% 10% 0% 26% FY 2006 25% FY 2007 28% 31% 32% 500 - EPS 1.993 10.318 FY 2009 9.577 35% 3.1% 2.500 3.36% 100% 90% 80% 70% 60% 50% (In EGP Millions) 3.960 EBITDA Margin 4.517 9.318 Revenue 3.960 YoY % Change Summary Income Statement In EGP Millions CAGR (2006-2010): 2.309 3.048 51% -3.790 Net Profit Margin 3.Summary Income Statement Revenue (In EGP Millions) Full Year FY 2010 10.

379 2.618 649 448 5.59% FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Retail Note: All financial figures reported are based on Consolidated financials under Egyptian Accounting Standards Wholesale Revenue 13 Income Statement EBITDA Balance Sheet .318 4.029 20.84% 42.124 810 637 5.053 3.67% 6.809 2.168 16.852 ( In EGP Millions) Wholesale Services Domestic: Domestic Revenue International: International Revenue 3.049 -11.67% 1.939 10.141 6.764 -18.88% 24.68% 3.464 6.72% 12% Access Voice Int`l WS Domestic WS Internet & Others 21% 36% Revenue Mix 3.960 17.764 3.242 1.197 4.181 5.Revenue Breakdown FY 2010 Revenue Analysis YoY % Change 14% 17% Revenue In EGP Millions Full Year FY 2010 FY 2009 Retail Services Access: Access Revenue Voice: Voice Revenue Internet & Data Others Total Retail Revenue 2.70% 1.697 3.379 52% Total wholesale Revenue Total Revenues 4.197 9.939 48% 5.936 4.24% -6.

277 5.0% 5.2% 9.865 55% Percent %) CAGR (2006-2010): -2.14 ) Margin 47.02 ) 22.163 54% 51% 51% 47% 45% 40% 35% 30% 25% 20% FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 14 Income Statement Revenue EBITDA Balance Sheet .EBITDA Analysis In EGP Billions (% of Sales) 10.1% 4.86 FY 2010 Sales Revenue Personnel Cost Interconnect Cost Other Opex EBITDA EBITDA (In EGP Millions) EBITDA Margin (In 60% 55% 50% 5.32 ( 2.30 ) ( 1.048 4.389 5.9% 20.7% ( 2.

035 33.900 1.40% -9.000 0 -2.220 16.424 32.100 1.204 FY 2009 7.79% 42.Term Investments Other Long -Term Assets Total Assets Curent Liabilities (Exc.937 20% 20% 945 919 981 1.194 0 150 725 146 5.086 10% 9% 9% FY 2008 10% 11% 0% FY 2006 FY 2007 FY 2009 FY 2010 Capex Capex/Sales Debt Position 10.300 1.88% 2.45% 2.409 300 200 FY 2006 FY 2007 FY 2008 FY 2009 137 FY 2010 -4.Summary Balance Sheet Capital Expenditure (CAPEX) Summary Balance Sheet In EGP Millions ( In EGP Millions) Full Year FY 2010 9.500 2.500 1. STD) Bank Short-Term Borrowings CPLTD Long -Term Debt Other Non-Current Liabilities Total Liabilities Total Equity & Minority Interest Total Liabilities & Equity 1.000 ( In EGP Millions) 600 712 393 600 500 361 1.777 3.64% 2.193 27.515 2.988 33.29% 2.216 27. Revenue 15 Income Statement EBITDA Balance Sheet .34% 0.000 -6.528 7.461 4.086 7.000 4.100 900 700 500 300 100 -100 30% Current Assets Net Fixed Assets Long .735 411 2.268 32.461 YoY % Change 26.00% -16.093 7 179 858 57 5.204 4.29% 2.700 1.589 400 4.000 -4.300 2.000 8.000 2.397 6.101 100 26 0 Cash Note: All financial figures reported are based on Consolidated financials under Egyptian Accounting Standards Net Debt Interest Exp.731 1.976 2.453 -1.126 14.46% 158.49% -100.68% -2.07% -15.000 6.

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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 17 .

relations@telecomegypt.Investor Relations Contacts Mahmoud Abu Taleb Director of Investment & Investor Relations Tel: +202 3131 5266 Fax: +202 3131 6115 Email: investor.telecomegypt.com.relations@telecomegypt.eg Website: ir.eg Mohamed Kamal General Manager of Investor Relations & Internal Reporting Tel: +202 3131 5219 Fax: +202 3131 6115 Email: investor.com.eg .com.