Etisalat Group A Profitable Growth Story Morgan Stanley 12th Annual Technology, Media & Telecoms Conference November 14 th -16 th 212, Barcelona. 1
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
Etisalat Snapshot Etisalat listed in Abu Dhabi Stock Exchange (ADX) since 22. Reporting currency of AED pegged to USD (USD 1 = AED 3.67) Stock ownership currently restricted to only UAE nationals. 11 BoD members; 7 representing the Federal Government and 4 free float. Free float 4% Emirates Investment Authority 6% Etisalat is the largest corporate contributor outside oil sector to the UAE economy. Etisalat contributed 21% of the Federal Government budget for 211 through dividend and royalty payments. With a market capitalisation of USD2 bn, Etisalat is the second largest telecom operator in GCC and ME region. Etisalat has operations in 15 countries including UAE, with an aggregate subscriber base of 13 million (1). Etisalat has achieved a CAGR of 11% growth in consolidated revenues to USD8.8 bn (AED32.2 bn) during 27-11. Investment grade ratings from all agencies Moody s: Aa3 / stable S&P: AA- / stable Fitch: A+ / stable USD billion 211 Revenue 8.8 EBITDA 4.3 EBITDA % 49% Net Income 1.6 Net Income % 18% CapEx 1.2 FCF 1.6 Notes: (1) Aggregate subscribers, including subsidiaries and associates. (2) Operating cash flow defined as (EBITDA CAPEX) in all subsidiaries with the exception of UAE since 5% Federal Royalty on consolidated net profits is also included in the formula (i.e. EBITDA CAPEX Federal Royalty). 3
Etisalat Group: A Profitable Growth Story 1976 The Emirates Telecomm. Corporation is founded 1982 Etisalat launches the Middle East s first mobile network. 1989 Etisalat establishes the Etisalat University College to create a talent pool of engineers to drive its future growth. 1994 The Middle East s first GSM service is introduced in the UAE. Etisalat launches Emirates Data Clearing House 1995 Internet services are rolled out across the country, another first in the region. Etisalat opens its SIM card factory, Ebtikar 1996 Etisalat is one of the founding investors in Thuraya. 1999 The Middle East s first ADSL service. Etisalat buys a stake in Tanzanian operator Zantel FY 2 1m subs 2 Etisalat introduces the E-Vision brand. Etisalat Academy is established 22 Etisalat lists shares on Abu Dhabi Stock Exchange FY 212 13m subs (1) 23 Etisalat launches the Middle East s first 3G network, and offers MMS services to its customers. 24 Etisalat wins second license to operate in KSA. Etisalat buys stake in Canar, (Sudan), PTCL (Pakistan), and Atlantique Telecom (West Africa) 26 Etisalat wins license in Egypt and Afghanistan. Etisalat offers BlackBerry in UAE 27 Etisalat acquires stake in greenfield in Nigeria & XL (Indonesia) 28 Etisalat completes nation-wide fibre optic backbone Etisalat acquired 45% of Swan Telecom 29 Etisalat acquires Tigo-Sri Lanka 211 Etisalat launches 4G in UAE 212 Etisalat exit India & decreased ownership in XL Axiata to 4.2% 1976-198 1981-1985 1986-199 1991-1995 1996-2 21-25 26-212 Note: (1) Aggregate subscribers, including subsidiaries and associates. 4
Etisalat Group: Footprint in ME and Asia Middle East Asia Etisalat, UAE Licence type Mobile, Fixed, Internet, 4G Ownership 1% Population 5 million Penetration rate Mobile 242%, Fixed 38% Internet 7% #of operators 2 Network cov. 1% Afghanistan Pakistan UAE Saudi Arabia Etisalat, Afghanistan Licence type Mobile, 3G Ownership 1% Population 3 million Penetration rate 57% Operators Mobile, 4 Network cov. 73% PTCL / Ufone - Pakistan Licence type Mobile, Fixed, 2G Ownership 23% Population 187 million Penetration rate Fixed 3%; Mobile 65% Operators Mobile, 5; Fixed, 11 Network cov. 85% Etihad Etisalat (Mobily) KSA Licence type Mobile & Internet, 3G Ownership 28% Population 26 million Penetration rate 22% # of operators Mobile, 3 Network cov. 99% Sri Lanka Etisalat Lanka Sri Lanka Licence type Mobile, 3G Ownership 1% Population 21 million Penetration rate 99% Operators Mobile, 5 Network cov. 73% 5
Etisalat Group: Footprint in Africa Moov CDI Cote d voire Licence type Mobile, 3G Ownership 1% Population 23 million Penetration rate 74% # of operators Mobile, 5 Network cov. 68% Etisalat Misr - Egypt Licence type Mobile & Internet, 3G Ownership 66% Population 82 million Penetration rate 116% # of operators Mobile, 3 Network cov. 99% EMTS Etisalat Nigeria Licence type Mobile, 3G Ownership 4% Population 155 million Penetration rate 62% # of operators Mobile, 5 Network cov. 77% Moov Niger Niger Licence type Mobile, 2G Ownership 1% Population 16 million Penetration rate 22% # of operators Mobile, 4 Network cov. 39% Etisalat Benin Benin Licence type Mobile, 2G Ownership 1% Population 9 million Penetration rate 63% # of operators Mobile, 5 Network cov. 7% Moov Gabon Gabon Licence type Mobile, 2G Ownership 94% Population 2 million Penetration rate 127% # of operators Mobile, 4 Network cov. 75% Niger Benin Cote d Ivoire Nigeria Togo Central African Republic Gabon Egypt Sudan Tanzania Zantel, Tanzania Licence type Mobile and Fixed, CDMA Ownership 65% Population 43 million Penetration rate Mobile 57%, Fixed.4% # of operators Mobile 6, Fixed, 2 Network cov. 42% Canar, Sudan Licence type Fixed, CDMA Ownership 89% Population 45 million Penetration rate Fixed 1 % # of operators Fixed, 2 Network cov. 32% Moov CAR Central African Republic Licence type Mobile, 2G Ownership 1% Population 5 million Penetration rate 21% # of operators Mobile, 5 Network cov. 41% Moov Togo Togo Licence type Mobile, 2G Ownership 88% Population 6 million Penetration rate 43% # of operators Mobile, 2 Network cov. 73% 6
Etisalat Group Strategy Going Forward.. Enrich customer experience Strategy focus and priorities Maximize commercial and operational performance in the UAE, return to growth and defend market leadership Excel in execution Nurture advanced technologies Continue to capture profitable growth in our existing international operations Push innovation in the digital space, leveraging our assets and partnerships ENGAGE Pursue group-wide initiatives to extract synergies and share best practices Grow with sustainable portfolio Govern decisively Pursue active portfolio management, focus on reinforcing existing operations, be selective in footprint expansion Achieve broadband leadership Strengthen management resources and accountability 7
Etisalat Group Strategy: ENGAGE ENGAGE Enrich customer experience Nurture advanced technologies Govern decisively Achieve broadband leadership Grow with sustainable portfolio Excel in Execution Key Strategic Deliver best in class customer experience Develop and reinforce a customer-centric culture LTE deployments in UAE & KSA Build up capabilities in Digital Services and ICT Actively manage operating companies Delegate power and hold management accountable Grow broadband revenue Mobile broadband leadership in UAE & KSA Acquire 3G licenses in Africa & Asia clusters Strengthen market leadership in key markets/segments Continue profitable growth in Egypt, Africa and Asia Clusters Turnaround UAE operations Focus on value Streamline processes Prudent financial polices 8
Etisalat Recognized for Innovation The first and only operator worldwide awarded three GSMA Global Mobile Awards Best Mobile Health Innovation and mwomen Best Mobile Product categories for its mobile health innovation Etisalat Mobile Baby that is helping to combat maternal mortality in developing countries Best Mobile Money Innovation award for its Etisalat Commerce commercial platform enabling customers to use the mobile phone as a payment instrument anywhere, anytime. 9
Corporate Governance Supervisory Governance Chairman Board of Directors Investment & Finance Committee Audit Committee Compensation & Renumeration Committee Executive Governance CEO EGMC Group Functions, Regional Clusters (RCs) & OpCos Group Functions RC Africa RC Asia UAE OpCo Etisalat Misr OpCo Mobily OpCo Digital Services Unit Government Relations & Communications Commercial Technology Finance Strategy and Business Development Legal & Regulatory Affairs Human Resources Procurement * Etisalat Group Management Committee 1
Overview of International Portfolio Etisalat Group Mobily KSA 27.4% Etisalat UAE 1% Etisalat Misr (Egypt) 66% Canar Sudan 89% Etisalat Nigeria 4% Etisalat Benin 1% Atlantique Telecom 1% Zantel Tanzania 65% Etisalat Lanka 1% Etisalat Afghanistan 1 PTCL Pakistan 23% Etisalat DB India 45% Telecel Faso 79.4% Moov Togo 65% Moov Gabon 7% Telecel Niger 9.5% Acell CAR 97.5% Moov Cote d Ivoire 1% Ufone 1% Africa Cluster Asia Cluster Associates Fixed line Deconsolidated 11
Consolidated P&L: Growth with improved margins in 212 FY 9 FY 1 FY 11 YoY 9M 11 9M 12 YoY Subs (m) (1) 78 95 117 +23% 18 13 2% Revenue (AED m) 31,334 31,929 32,242 +1% 24,1 24,467 +2% EBITDA (AED m) 19,441 16,561 15,882-4% 11,664 12,576 +8% EBITDA Margin 62% 52% 49% -3pp 49% 51% +3pp Net Profit 8,836 7,631 5,839-23% 5,135 5,888 +15% Net Profit Margin 28% 24% 18% -6pp 21% 24% +3pp EPS (AED) 1.12.97.74-24%.65.74 +15% Highlights Aggregate subscribers reached 13 million with strong subscriber growth internationally Revenue growth is driven by international operations which now contribute 3% of consolidated revenues Data and internet revenues continue to grow in all markets due to uptake of new products and services One of the highest EBITDA margins in the global telecom sector Impairment in India impacted FY 11 net profit by AED 1,2 m (3pp impact on FY net profit margin) Adjusting for the one-offs in India and Nigeria, net income declined by 9% in FY 11 (1) Aggregate subscribers consist of GSM, CDMA, fixed, dialup, fixed broadband, and WLL; and total aggregate subscriber number includes subsidiaries and associates. Subscriber numbers reported in 29, 21 and 211 have been adjusted to exclude XL Axiata operations du to the reclassification of XL Axiata investment as other investments available for sale effective from September 1 st 212. 12
Clusters: Int l markets representing 26% of consolidated revenues in 211 FY 211 UAE Egypt Africa (1) Asia (2) Associates (3) Revenue (AED m) 23,51 4,5 2,549 1,414 YoY Growth -3% +9% +19% +44% EBITDA (AED m) 13,38 1,768 63 (182) EBITDA Margin 57% 39% 24% -13% Net Profit 6,32 25 (64) (585) 64 (4) Net Profit Margin 27% 6% -3% -41% Highlights Despite revenues decline in UAE, maintained high margins due to effective cost management High single digit top line growth in Egypt despite political unrest EBITDA margin improvement significantly in all international clusters Excluding India, EBITDA margin in Asia is in the mid-2 s (1) Africa cluster consists of Atlantique Telecom, Tanzania and Sudan operations (2) Asia cluster consists Afghanistan, Sri Lanka, and India operations (3) Associates include KSA, Indonesia, Pakistan, and Nigeria operations (4) Etisalat share of associates results after Federal Royalty 13
Clusters: High growth in int l markets representing 29% of consolidated revenues in 9M 212 9M 212 UAE Egypt Africa (1) Asia (2) Associates (3) Revenue (AED m) 16,895 3,773 2,66 1,169 YoY Growth -2% +15% +12% +13% EBITDA (AED m) 1,58 1,398 581 121 EBITDA Margin 6% 37% 28% 1% Net Profit 4,459 329 67 (13) 442 (4) Net Profit Margin 26% 9% 3% -11% Highlights Double digit revenue growth across all international clusters Margin expansion in UAE despite decline in revenues High revenue growth combined with stable EBITDA margin in Egypt Positive EBITDA & net profit growth in Africa cluster EBITDA breakeven in Asia cluster (1) Africa cluster consists of Ivory Coast, Benin, Togo, Gabon, Niger, Central African Republic, Tanzania and Sudan operations (2) Asia cluster consists Afghanistan, Sri Lanka, and India (only until end of February 212) operations (3) Associates include KSA, Indonesia, Pakistan, and Nigeria operations (4) Etisalat share of associate results after Federal Royalty 14
Balanced Portfolio: Int l operations are main contributors for growth Revenue Evolution (AED Billions) (29-211) 31.3 +3 31.9 32.2 Revenue Evolution Breakdown (AED Billions) (21-211) Growth Contribution -5% +9% +19% +44% +95% +1% 31.9 32.2 1.29.39.41.43.38 29 21 211 21 UAE Misr Africa Asia Other 211 EBITDA Evolution (AED Billions) (29-211) EBITDA Evolution Breakdown (AED Billions) (21-211) 19.4-18 16.6 15.9 Growth Contribution -13% 1.91 +21% +67% +26% +141 %.31.24.6.62-4% 16.6 15.9 29 21 211 21 UAE Misr Africa Asia Other 211 15
24,6 24,4 24,2 24, 23,8 23,6 23,4 23,2 23, Revenue: Increasing revenue contribution from international markets 35. 25. 15. 5. (5.) Revenue (AED b) and YoY growth (%) 31.93 32.24 24.1 24.47 2% 1% 3% 2% FY'1 FY'11 9M'11 9M'12 Revenue YoY growth %.5.3.1 -.1 Sources of Revenue growth 9M 11 vs 9M 12 24,11 421 491 23,59 23,59 24,467 132 31 224 24,35 24,46 24,81 Highlights 3pp YoY increase in revenue share of international operations reaching to 29% of consolidated revenues Continued high growth in data / internet revenues despite decline in voice revenues in UAE Subscriber base increase accompanied by strong revenue growth in Egypt Significant revenue growth contribution from Benin, Togo, Gabon and Niger in Africa Continued growth momentum in Sri Lanka and Afghanistan in Asia 9M'11 UAE Egypt Africa Asia Other 9M'12 Note: Other revenues consist of non-telecom revenues, management fees, etc. 16
13, 12,8 12,6 12,4 12,2 12, 11,8 11,6 11,4 11,2 11, EBITDA: Continued EBITDA margin improvement 15. 1. EBITDA (AED b) & EBITDA Margin 5.. 16.56 15.88 52% 49% 11.66 12.58 49% 51% FY'1 FY'11 9M'11 9M'12 EBITDA EBITDA Margin.85.65.45.25.5 -.15 Sources of EBITDA growth 9M 11 vs 9M 12 11,664 127 11,791 18 26 11,971 12,177 299 11 12,475 12,576 12,576 9M'11 UAE Egypt Africa Asia Other 9M'12 Highlights Consolidated EBITDA level in absolute terms increased by 8% YoY Consolidated EBITDA margin grew by 2pp YoY EBITDA grew due to effective cost management in UAE despite revenue decline Strong revenue growth accompanied with stable margins and increased EBITDA contribution from Egypt Increasing contribution from Togo, Benin, Gabon and Niger in Africa Continued EBITDA growth in Sri Lanka in Asia Deconsolidation of India impacting EBITDA positively Note: Other EBITDA consist of results from non-telecom operations, management fees, etc. 17
2,5 2, 1,5 1, 5 3,5 3, 2,5 2, 1,5 1, 5 Balance Sheet: Strong balance sheet with financial flexibility Balance Sheet (AED m) Q4 11 Q3 12 Cash & Cash Equivalent 9,972 12,176 Total Assets 72,892 73,699 Borrowings by Operation 1 (AED m) 2,376 Total Debt 6,696 4,955 Net Cash 3,276 7,221 Total Equity 41,74 43,13 1,5 583 327 379 24 Egypt AT UAE Afgh. Tanz. SL Net cash generated/ used (AED m) 9M 11 9M 12 Operating 7,255 8,43 Investing (1,744) (55) Financing (5,36) (5,994) Net change in cash 24 2,354 Effect of FX rate changes 19 (149) Ending cash balance 1,5 12,176 Repayment Schedule (AED m) 2,896 1,264 211 584 212 213 214-15 > 215 (1) Borrowings in UAE is in Etisalat International Pakistan (EIP) books which is the SPV established for the investment in Pakistan. 18
Cashflow: Disciplined capital spending and improved operating cash flow Operating cash flow 1 AED (m) 5,742 Highlights Operating cash flow improved by 13% YoY 3,31 3,54 3,995 to AED 4 billion due to better EBITDA combined with lower CAPEX spending Decline in consolidated CAPEX mainly due to: FY'1 FY'11 9M'11 9M'12 Final stages of FTTH roll-out in UAE CAPEX (AED b) & CAPEX/revenue % 6.5 5.9 5.5 4.3 4.5 3.5 2.99 2.69 2.5 18% 1.5 13% 12%.5 11% (.5) FY'1 FY'11 9M'11 9M'12.35.3.25.2.15.1.5 Slower roll-outs in Egypt and Africa Exiting from India CAPEX in UAE focused on enhancing coverage, deployment of 3G networks and expanding LTE rollout LTE population coverage exceeded 8% in UAE (1) Operating cash flow defined as ( EBITDA CAPEX Federal Royalty). 19
Dividend: Stable dividend distribution record Cash Dividends (1) - AED million Bonus 1% Share (3) 25% 1% 2% 2% 1% 4,312 4,744 4,744 Cash Dividends Per Share - AED.6.6.6.6.6.6 3,594.5.5 2,723 2,995 1,65 1,815 24 25 26 27 28 29 21 211 (1) represents total of interim and proposed amounts 24 25 26 27 28 29 21 211 Dividend Yield (2) 5.73% 5.85% 6.1% Dividend Payout Ratio 62.2% 81.2% 3.51% 4.66% 48.3% 42.6% 46.5% 41.% 41.5% 48.8%.22% 1.73% 2.81% 24 25 26 27 28 29 21 211 24 25 26 27 28 29 21 211 (2) Dividends yields calculated based on actual share price on the date of cash payments (3) Bonus share distributed during 24 211 totaled 4,96 million share 2
UAE: Growing subscriber base with improved margins Quarterly FY 1 FY 11 YoY 9M 11 9M 12 YoY Subs (1) (m) 8.3 9. +8% Revenue (AED m) 24,294 23,51-3% 17,316 16,895-2% EBITDA (AED m) 15,168 13,38-12% 9,931 1,58 +1% EBITDA Margin 62% 57% -5pp 57% 6% +2pp Net Profit 7,419 6,32-15% 4,58 4,459-1% Net Profit Margin 31% 27% -4pp 26% 26% pp CAPEX 2,262 1,767-22% 1,348 1,264-6% CAPEX/Revenue 9% 8% -1pp 8% 7% pp Highlights Active subscriber base grew by 8% YoY driven by healthy growth in elife subscribers Despite YoY growth in data/internet revenues, drop in voice revenues led to a 2% decrease in total revenues Expansion of EBITDA margin through effective cost optimization Net profit impacted by higher depreciation costs and Federal Royalty charges Less CAPEX in absolute terms and focused on ensuring leadership in 3G/4G (1) Subscriber numbers calculated as aggregate number of GSM, fixed, dialup, fixed broadband and E-Life lines generating revenue during the last 9 days. 21
Mobile UAE: Maintaining market leadership with stable value share for the last 3 consecutive quarters Subs Market Share Revenue Market Share 59% 57% 56% 56% 55% 55% 54% 68% 65% 65% 62% 62% 62% 62% 41% 43% 44% 44% 45% 45% 46% 32% 35% 35% 38% 38% 38% 38% Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 87% 86% 86% 85% 84% 84% 83% 86% 84% 83% 83% 83% 83% 83% Fixed (1) 13% 14% 14% 15% 16% 16% 17% Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 14% 16% 17% 17% 17% 17% 17% Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Etisalat Du Etisalat Du (1) Sources are TRA and companies reported numbers 22
8. 7. 6. 5. 4. 3. 2. 1...6.5.4.3.2.1. 18 16 14 12 1 8 6 4 2.9.8.7.6.5.4.3.2.1. 1.4 1.2 1..8.6.4.2. 25 2 15 1 5 UAE: Subscriber (1) growth driven by elife segment Mobile Subs (m) & ARPU (2) (AED) Fixed Subs (m) & ARPL (3) (AED) 155 131 129 1.21 1.13 1.11 5.36 5.81 5.82 1.4 1.17 1.23 Q3'11 Q2'12 Q3'12 Postpaid Prepaid Blended ARPU 98 126 111 Q3'11 Q2'12 Q3'12 Fixed ARPL elife Subs Double & Triple-Play (m) Fixed Broadband (4) Subs (m).45.48 +61%.73.78.79 +9%.3 Q3'11 Q2'12 Q3'12 Q3'11 Q2'12 Q3'12 (1) Subscriber numbers calculated as aggregate number of GSM, fixed, dialup, fixed broadband and elife lines generating revenue during the last 9 days. (2) Mobile ARPU calculated as total mobile voice, data and roaming revenues divided by the average mobile subscribers for the quarter. (3) ARPL calculated as fixed line revenues divided by the average fixed subscribers for the quarter. (4) Fixed broadband subscriber numbers calculated as total of residential DSL (Al-Shamil), corporate DSL (Business One) and E-Life subscribers. 23
5, 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5 1.9.8.7.6.5.4.3.2.1 Egypt: Strong revenue growth with stable margin Revenue (AED m) & EBITDA Margin Highlights +9% +15% 4,114 4,5 3,282 3,773 Strong revenue growth driven by customer acquisitions, despite political unrest 35% 39% 37% 37% Continued high growth in mobile data usage Maintained leadership in share of market FY'1 FY'11 9M'11 9M'12 Revenue EBITDA % net adds Etisalat launched its first exclusive 3G CAPEX & CAPEX/Revenue ratio (%) Android-powered smartphone supporting data growth 1,65 1,45 1,25 1,5 85 65 45 25 5 (15) 1,571 4% -39% -19% 1,129 25% 686 21% 553 15% FY'1 FY'11 9M'11 9M'12 CAPEX CAPEX/Revenue.7.6.5.4.3.2.1 Maintained strong EBITDA margin at high 3 s Lower capex due to difficulties in network rollout. Continued to invest in maintenance capex Improvement in operating cash flow 24
1,6 1,4 1,2 1, 8 6 4 2 1.8.6.4.2 -.2 -.4 Asia: Revenue growth with significantly improved EBITDA margin Afghanistan, Sri Lanka, and India (1) Subscribers (m) Revenue (AED m) / EBITDA Margin 8.5 8.2-3% +44 1,414 +13% 983 1,37-25% -13% -17% 1,169 1% FY'1 FY'11 9M'11 9M'12 9M'11 9M'12 Revenue EBITDA % Highlights CAPEX & CAPEX/Revenue ratio (%) Strong revenue and subscriber growth in Sri Lanka and Afghanistan 3G launched in Afghanistan Excluding India, Annual EBITDA margin from high- 1 s to mid-2 s 1,4 1,2 1, 8 6 4 2 1,379 14% -52% -7% 655 472 44 46% 46% 38% 1.5 1.3 1.1.9.7.5 Deconsolidation of India in Q1 12, impacted YoY comparison of subscribers and EBITDA margin FY'1 FY'11 9M'11 9M'12 CAPEX.3 (1) Financial statements of Etisalat DB in India were deconsolidated effective from March 1 st 212. 25
12. 1. 8. 6. 4. 2.. 3, 2,5 2, 1,5 1, 5 8 7 6 5 4 3 2 1 1.9.8.7.6.5.4.3.2.1 1.9.8.7.6.5.4.3.2.1 Africa: Strong customer acquisition with improved margins Ivory Coast, Benin, Togo, Gabon, Niger, CAR (1), Tanzania, & Sudan Subscribers (m) Revenue (AED m) / EBITDA Margin 11.3 +3% +19% 2,549 +12% 8.7 2,141 1,842 2,66 17% 24% 2% 28% 9M'11 9M'12 FY'1 FY'11 9M'11 9M'12 Revenue EBITDA % Highlights CAPEX & CAPEX/Revenue ratio (%) Strong subscriber acquisition mainly driven by growth in Tanzania, Ivory Coast and Togo Revenue growth led by strong performance in Benin, Togo, Gabon and Niger Increasingly competitive market in Tanzania 574 +19% 686 27% 27% 432 23% -25% 324 16% Continued EBITDA margin improvements 3G launch in Ivory Coast before year-end FY'1 FY'11 9M'11 9M'12 CAPEX CAPEX/Revenue (1) CAR stands for Central African Republic 26
16. 14. 12. 1. 8. 6. 4. 2.. Nigeria: Record growth rates with improved margins Subscribers (m) Revenue (AED m) / EBITDA Margin 9.6 9M'11 14.6 9M'12 +52% 2, 1,5 1, 5 852-61% +139% 2,34-22% 1,45-6% +53% 2,15 5% FY'1 FY'11 9M'11 9M'12 Revenue EBITDA % 1 1 () () (1) (1) (1) Highlights CAPEX & CAPEX/Revenue ratio (%) Solid growth in subscriber base driven by innovative and unique offers Strong revenue growth accompanied with margin improvements Population coverage of network reaching 77% Capex focused on expanding 3G coverage 1,2 1, 8 6 4 2-7% +36% 1,15 895 83 845 15% 41% 6% 54% FY'1 FY'11 9M'11 9M'12 CAPEX CAPEX/Revenue 2 1 1 1 1 1 () 27
.7.6.5.4.3.2.1. Associates (1) : Sustained bottom line KSA, Pakistan, Nigeria, and Indonesia KSA-Mobily Financial Highlights (AED b) Share in Other Associate Net Profit (2) (AED b) 2. 18. 16. 14. 12. 1. 8. 6. 4. 2.. 15.79 19.77 14.2 16.6 38% 37% 36% 36% 4.12 4.98 3.34 4.7 FY'1 FY'11 9M'11 9M'12.4.39.38.37.36.35.34.62-3.6 +1.4.44 FY'1 FY'11 9M'11 9M'12 Revenue Net Profit EBITDA % Highlights Mobily continued to post strong results during 212 Strong leadership position in mobile broadband SAR 3.25 dividend per share for fiscal year 211 (Etisalat s share: AED 6M already received) SAR 3. dividend per share for the first 9 month of 212 (Etisalat s share: AED 537M of which AED 358M already received) Highlights Better Margins from associates Consumer fixed broadband segment; key growth catalyst in Pakistan Effective from September 1st 212, XL Axiata is no longer treated as an associate and shareholding in XL Axiata reclassified as other investments available for sale (1) Associates operate under the following brand names: KSA Mobily; Pakistan PTCL; Nigeria Etisalat Nigeria; Indonesia PT XL Axiata (2) Net profit share to Etisalat based on our % of ownership (KSA 27.5%; Pakistan 26%; Indonesia 13.3%; Nigeria-4%; Thuraya-28%) 28
Etisalat Investor Relations Email: ir@etisalat.ae Website: www.etisalat.com/html/ir ADX ticker: Etisalat ADX website: www.adx.ae 29