Investor Presentation Q 1 2018 Disclaimer This document

Investor Presentation Q 1 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 2

Q 1 2018 results highlights Revenue (EGP bn) Customers Q 1 2018: Strong operational growth ( In mn ) 4. 8 bn + 15% Yo. Y/ -12% Qo. Q EBITDA (EGP bn) 1. 5 bn + 9% Yo. Y/ +19% Qo. Q EBITDA margin of 31. 5% (+199 bps) Voice Data ü Fixed 7. 3 4. 4 Consolidated revenue of Q 1 2018 came in at EGP 4. 8 bn with a Yo. Y growth of 15%. ü Mobile 2. 9 Retail Services segment solely led the growth in consolidated revenue with a growth of 35% Yo. Y driven by the rise of Home & Consumer services which grew by 45%. ü Our customer base grew across all segments: Fixed Voice reached 7. 3 mn (10% Yo. Y), ADSL totaled 4. 4 mn (29% Yo. Y), and Mobile closed at 2. 9 mn (27% Qo. Q). ü Wholesale revenue remained flat as the decline in ICA stemming from the global trend of declining international voice traffic was largely offset by the revenue increase in Domestic Wholesale, followed by the increase in IC&N. ü EBITDA grew by 9% recording a margin of 31. 5% higher than our full year guidance of mid to high 20’s. We note that Q 1 is usually the quarter with the highest margin of the year. ü Net profit totaled EGP 688 mn with a drop of 48% from Q 1 2017 due to a decline in investment income from VFE, followed by an increase in depreciation & amortization, and interest expense. Net Profit (EGP mn) 688 mn vs. Net profit of 1. 3 bn in Q 1 17 Net profit margin of 14. 4% 3

Highlights of the main events of the quarter Events in the quarter A new investor relations portal was launched adapting the "WE“ approach Telecom Egypt and Etisalat Misr signed a final settlement agreement in regards to a dispute on international calls services Subsequent to the quarter WE launched its post-paid offering under the name of “indigo” Telecom Egypt revamped its fixed broadband service as “WE Internet”, offering highest speed, best reliability, and top-notch customer experience. Telecom Egypt renewed its transmission and infrastructure services agreement with Vodafone Egypt Telecom Egypt signed an agreement with Orange Data to provide bitstream services for three years Telecom Egypt announced a potential investment opportunity in submarine cables Bo. D approved the acquisition of Middle East and North Africa Submarine Cable (MENA Cable) by a 50% owned subsidiary Bo. D also approved a renewable 5 -year USD 500 mn syndicated loan to refinance outstanding short-term USD debt and to provide a cushion for working capital needs 4

Revenue by business unit Data leading revenue growth Enterprise Home & Consumer +10. 6% 1 654 Domestic +12. 9% -33. 9% +44. 9% -7. 6% +18. 2% +4. 1% +2. 9% -61. 5% +2. 1% 1 186 944 1 829 1 262 International Customers & Networks International Carriers Affairs 916 624 552 845 855 1 096 880 1 073 353 299 Q 1 2017 ü ü Q 4 2017 Q 1 2018 Q 1 2017 Q 4 2017 Q 1 2018 Q 4 2017 Home & Consumer revenue, which grew by 45% led the increase in Retail services revenue, contributing 89% of the Yo. Y growth in Retail services, capturing a larger share of total revenue on the expense of International Carrier Affairs. Home & Consumer data revenue increased by 46% on a 30% growth in ADSL customers, coupled with a 9% growth in ADSL ARPU. The growth was complemented by an increase of 43% in Home & Consumer voice services, led by a 10% in Fixed line customers. ü Enterprise Solutions witnessed an increase of 13% from Q 1 2017 to Q 1 2018. ü Wholesale services had an 18% growth in IC&N accompanied by a 4% increase in Domestic wholesale, both offset the 8% decline in ICA revenue resulted by the global trend of decline in IDD revenue. ü Q 1 2017 IC&N grew its revenues through an outstanding increase in International Customer Support growing by 48% in addition to a 19% increase in Ancillary services revenue. Q 1 2018 Q 1 2017 Q 4 2017 Q 1 2018 7% 7% 30% 23% 38% Q 1 2018 18% 29% Q 1 2017 13% 20% 5

Key highlights Revenue driven performance Revenue EBITDA (EGP mn) +15. 4% +8. 5% +19. 4% -12. 1% 1 506 5 442 4 782 1 387 4 144 1 261 Q 1 2017 Q 4 2017 Q 1 2018 Operating Profit/Loss Q 4 2017 Q 1 2018 Net Profit/Loss (EGP mn) (EGP mn ) -48. 1% -16. 4% 1 326 +245. 4% 688 1 031 862 Q 1 2017 +259. 7% Q 4 2017 -593 Q 4 2017 -431 Q 1 2018 6

Q 1 2018 4, 782 1, 829 624 880 1, 096 353 Q 4 2017 5, 442 1, 654 944 855 1, 073 916 Q 1 2017 4, 144 1, 262 552 845 1, 186 299 Qo. Q -12% 11% -34% 3% 2% -61% Yo. Y 15% 45% 13% 4% -8% 18% Total employee cost Call costs Co. GS (excl. above expenses) S&D (excl. salaries, D&A) G&A (excl. salaries, D&A) -1, 202 -1, 015 -753 -201 -105 -1, 772 -1, 039 -972 -238 -159 -1, 007 -942 -599 -87 -121 -32% -23% -15% -34% 19% 8% 26% 132% -14% EBITDA 1, 506 1, 261 1, 387 19% 9% Margin 31% 23% 33% 831 bps (199 bps) 36 -1, 066 43 103% -16% Depreciation Amortization -529 -151 -626 -162 -373 -26 -15% -7% 42% 491% Operating profit Margin 862 18% -593 -11% 1, 031 22% 245% 2, 892 bps -16% (354 bps) Income from investments 287 561 675 -49% -58% Net finance (cost) / income Net interest (expense) / income -80 -211 -183 -222 -114 6 56% -5% 30% N/M Tax -168 8 -272 N/M -38% Net Profit Margin 688 14% -431 -8% 1, 326 32% 260% 2, 230 bps -48% (1, 761 bps) 0. 4 -0. 25 0. 78 260% -48% Expenses In EGP mn Revenue Home & Consumer Enterprise Solutions Domestic Wholesale International Carriers Affairs International Customers & Networks Revenue Income statement • Total revenue grew by 15% as a result of outstanding performance in Retail services, while Wholesale maintained a stable performance. • Call costs as a percentage of revenue declined to 21% in Q 1 2018 from 23% in Q 1 2017 supported by the increase in topline and despite the increase in mobile services related call costs. Salaries have increased by 19% Yo. Y as a result of offering social allowance for employees, raising the minimum wage, and hiring new employees for our mobile network operations. Normalizing Q 1 2017 for such items leads to a 10% Yo. Y increase in salaries, aligned with the annual salary increase. S&D expenses have risen due to the strong marketing campaigns related to mobile services and several commercial sponsorships. • EPS * Note: All financial figures reported are based on the consolidated financials under The Egyptian Accounting Standards * EPS excludes employees profit share Other OPEX Non-operational • EBITDA came in at EGP 1. 5 bn with a margin of 31. 5%. We note that some employee cost adjustments took place starting Q 2 2017 retroactively, applying such charges on Q 1 2017 leads to an normalized EBITDA margin of 31. 8% • Depreciation increased by 42% Yo. Y as a result of our increased investments in the fiber infrastructure and mobile network. Amortization recorded EGP 151 mn as a result of the start of mobile license amortization in Q 3 2017. Hence, Q 1 2017 did not include mobile license amortization. • • Net profit Other (expense) / income EBITDA • Investment income from VFE declined by 58% due to tax and legal provisions, and the retroactive application of discounts related to Vodafone International Services. The company started incurring interest expense in Q 3 2017, prior to that interest was capitalized until the mobile launch. Hence, Q 1 2017 did not include interest expense. Net Profit declined by 48%, impacted most significantly by: decline in investment income from VFE, followed by an increase depreciation & amortization, and increase in interest expense. Normalizing net profit for VFE would lead to a net profit of EGP 931 mn (a decline of 30% Yo. Y) 7

Net profit Variance analysis -48% 194 227 638 98 281 7 183 388 1 326 104 688 Q 1 17 Net Profit Revenue Employee Costs COGS SG&A Depr & Amort. Other Net Income/Exp. Finance Investment Income Taxes Q 1 18 Net Profit 8

Cash flow analysis Net cash from operating activities FCFF (EGP mn) 1 824 1 224 1 362 1, 353 1 313 938 681 457 365 135 Q 1 2014 Q 1 2015 Q 1 2016 Q 1 2017 Q 1 2014 Q 1 2018 Cash capex Q 1 2015 Q 1 2016 Q 1 2017 Q 1 2018 In-service capex (EGP mn) Capex License Capex (EGP mn) Capex/sales 600 1 800 17% 90% 16% 1 663 1 600 533 80% 500 1 400 70% 1 200 60% 16% 501 15% 440 400 42% 1 000 1 172 14% 50% 353 300 800 719 600 827 27% 25% 200 30% 12% 13% 12% 11% 12% 20% 100 97 226 11% 10% 25 - 0% Q 1 2014 298 40% 9% 400 26% Q 1 2015 Q 1 2016 Q 1 2017 Note: All financial figures reported are based on Consolidated financials under The Egyptian Accounting Standards. Q 1 2018 - 10% Q 1 2014 Q 1 2015 Q 1 2016 Q 1 2017 Q 1 2018 9

Balance sheet highlights Breakdown of capex in-service FCFE (EGP mn) Access Network Transmission International cable Customer care Others 1 165 0% 651 642 410 Q 1 2014 Q 1 2015 Net debt (EGP mn) 17% 340 Q 1 2016 Total debt Q 1 2017 5% Q 1 2018 77% Q 1 2018 Net debt/ EBITDA (Based on annualized EBITDA) Cash 1, 1 x 6 941 4 033 - 523 - 411 3 083 0, 4 x 1 556 - 413 1 291 - 3 546 - 7 772 - 0, 7 x - 1, 3 x Net debt - 6 418 Q 1 2014 - 3 622 - 2 669 1 989 6 481 - 2, 0 x Q 1 2015 Q 1 2016 Q 1 2017 Q 1 2018 Q 1 2014 Q 1 2015 Q 1 2016 Q 1 2017 Q 1 2018 10

Our performance in context Delivering on guidance across main KPIs Q 1 2018 actual FY 2018 guidance Revenue Growth Yo. Y 15% High single to low double digit EBITDA margin (%) 31% Mid to high 20 s CAPEX / sales (%) In-service: 13% Cash: 25% 30 -35% 11

Thank you Investor relations team investor. relations@te. eg Check our newly revamped website www. ir. te. eg