Etisalat Group A Profitable Growth Story JP Morgan - MENA and Turkey Corporate Access Days May 31 st 212, London. 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
Dr. Daniel Ritz Chief Strategy Officer Etisalat Group 3
Etisalat Snapshot Etisalat listed in Abu Dhabi Stock Exchange (ADX) in 22 Stock ownership currently restricted to only UAE nationals 11 BoD members; 7 representing the Federal Government and 4 free float 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 USD19bn, Etisalat is the second largest telecom operator in GCC and ME region. Etisalat has operations in 16 countries including UAE, with an aggregate subscriber base of 169 million (1). Etisalat has achieved a CAGR of 11% growth in consolidated revenue s to $8.8 bn (AED32.2bn) during 27-11. Investment grade ratings from all agencies Moody s: Aa3 / stable S&P: AA- / stable Fitch: A+ / stable Free float 4% Emirates Investment Authority 6% USD billion 211 Revenue 8.8 EBITDA 4.3 EBITDA % 49% Net Income 1.6 Net Income % 18% CapEx 1.2 FCF 1.6 Note: (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). 4
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 2 Etisalat introduces the E-Vision brand. Etisalat Academy is established FY 2 1m subs 22 Etisalat lists shares on Abu Dhabi Stock Exchange 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) FY 211 167m subs (1) 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 1976-198 1981-1985 1986-199 1991-1995 1996-2 21-25 26-211 Note: (1) Aggregate subscribers, including subsidiaries and associates. 5
Etisalat Group: Footprint in ME and Asia Middle East 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% Etihad Etisalat (Mobily) KSA Licence type Mobile & Internet, 3G Ownership 28% Population 26 million Penetration rate 22% # of operators Mobile, 3 Network cov. 99% Afghanistan Pakistan UAE Saudi Arabia Sri Lanka Indonesia Asia Etisalat, Afghanistan Licence type Mobile, 3G Ownership 1% Population 3 million Penetration rate 57% Operators Mobile, 4 Network cov. 73% Etisalat Lanka Sri Lanka Licence type Mobile Ownership 1% Population 21 million Penetration rate 99% Operators Mobile, 5 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% PT XL Axiata Tbk Indonesia Licence type Mobile Ownership 13% Population 246 million Penetration rate 98% Operators Mobile, 11 Network cov. 92% 6
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, 2G 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. 74% 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, 3G Ownership 1% Population 5 million Penetration rate 21% # of operators Mobile, 5 Network cov. 41% Moov Togo Togo Licence type Mobile, 3G Ownership 88% Population 6 million Penetration rate 43% # of operators Mobile, 2 Network cov. 73% 7
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 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 Executive Committee Audit & Risk Management Committee Investment Committee Organization & Compensation Committee Executive Governance CEO EGMC HR Sub-Committee Procurement Synergies Sub-Committee 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
Serkan Okandan Chief Financial Officer Etisalat Group 11
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 PT XL Axiata Tbk Indonesia 13.3% 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 12
Consolidated P&L: Growth with high margins FY 9 FY 1 FY 11 YoY 1Q 11 1Q 12 YoY Subs (m) (1) 19 135 167 +23% 135 169 25% Revenue (AED m) 31,334 31,929 32,242 +1% 8,4 8,25 +2% EBITDA (AED m) 19,441 16,561 15,882-4% 4,13 4,94 -.2% EBITDA Margin 62% 52% 49% -3pp 51% 5% -1pp Net Profit 8,836 7,631 5,839-23% 1,817 1,89 -.4% Net Profit Margin 28% 24% 18% -6pp 23% 22% -1pp EPS (AED) 1.12.97.74-24%.23.23 % Highlights Aggregate subscribers reached 169 million with strong subscriber growth internationally Revenue growth is driven by international operations which now contribute 28% 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 decline by 9% in FY 11 (1) Aggregate subscribers consist of GSM, CDMA, fixed, dialup, fixed broadband, and WLL.. Additionally, subscriber definitions may vary between countries. It includes subsidiaries and associates. 13
Clusters: int l markets representing 26% of consolidated revenues 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 Stabilizing subscriber levels in the UAE after strong Q4 net acquisition of.3m 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 associate results after federal royalty. 14
Clusters: High growth in int l markets Q1 212 UAE Egypt Africa (1) Asia (2) Associates (3) Revenue (AED m) 5,788 1,26 678 378 YoY Growth -3% +22% +2% +19% EBITDA (AED m) 3,416 431 191 (5) EBITDA Margin 59% 36% 28% -1% Net Profit 1,533 129 (1) (123) 288 (4) Net Profit Margin 26% 11% -1% -32% Highlights ~2% revenue growth across all international clusters Despite decline in revenues, strong margins maintained in UAE High revenue growth combined with maintained EBITDA margin in Egypt Close to net profit and EBITDA breakeven in Africa and Asia clusters, respectively (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 applied in UAE 15
8,3 8,2 8,1 8, 7,9 7,8 7,7 7,6 35. 3. 25. 2. 15. 1. 5...5-3E-16 -.5 -.1 -.15 -.2 -.25 -.3 Revenue: Increasing revenue contribution from international markets Revenue (AED b) and YoY growth (%) 31.93 32.24 2% 1% 2% 2% 8.4 8.2 FY'1 FY'11 Q1'11 Q1'12 Revenue YoY growth % Sources of Revenue growth Q1 11 vs Q1 12 61 32 115 198 219 8,176 8,25 8,25 8,4 8,61 7,842 7,842 Highlights Positive YoY revenue growth 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 Q1'11 UAE Egypt Africa Asia Other Q1'12 Note: Other revenues consist of non-telecom revenues, management fees, etc. 16
4,15 4,1 4,5 4, 3,95 3,9 3,85 3,8 3,75 3,7 18. 16. 14. 12. 1. 8. 6. 4. 2...65.55.45.35.25.15.5 -.5 -.15 EBITDA: Maintained stable EBITDA margins EBITDA (AED b) & EBITDA Margin 16.56 15.88 52% 49% 51% 5% 4.1 4.9 FY'1 FY'11 Q1'11 Q1'12 EBITDA Sources of EBITDA growth Q1 11 vs Q1 12 27 89 258 117 4,13 71 4,94 4,94 4,32 3,915 3,844 3,844 Highlights Maintained EBITDA level in line with last year Decrease in revenues adversely impacted EBITDA in UAE Strong revenue growth accompanied with stable margins increased EBITDA contribution from Egypt Increasing contribution from Togo, Benin and Niger in Africa Continued EBITDA growth in both Sri Lanka and Afghanistan in Asia Deconsolidation of India impacting EBITDA positively Q1'11 UAE Egypt Africa Asia Other Q1'12 Note: Other EBITDA consist of results from non-telecom operations, management fees, etc. 17
3,5 3, 2,5 2, 1,5 1, 5 3,5 3, 2,5 2, 1,5 1, 5 Balance Sheet: net cash position Balance Sheet (AED m) Q4 11 Q1 12 Cash & Cash Equivalent 9,972 11,527 Total Assets 72,892 73,74 Borrowings by Operation 1 (AED m) 2,887 Total Debt 6,696 5,482 Net Cash 3,276 6,45 Total Equity 41,74 41,12 1,15 583 388 342 267 Egypt AT UAE Afgh. Tanz. SL Debt by Currency % Repayment Schedule (AED m) EUR 16% Others % EGP 33% 1,122 1,278 2,999 912 USD 51% 212 213 214-6 217- (1) Borrowings in UAE is in Etisalat International Pakistan (EIP) books which is the SPV established for the investment in Pakistan. 18
7. 6. 5. 4. 3. 2. 1...2.18.16.14.12.1.8.6.4.2 Cashflow: Improved Operating Cash Flow Operating cash flow 1 AED (m) Highlights 5,742 Annual and quarterly decline in consolidated CAPEX mainly due to: 3,31 Final stages of FTTH roll-out in UAE 1,171 1,356 Slower roll-outs in Egypt and Africa Suspending operations in India FY'1 FY'11 Q1'11 Q1'12 CAPEX (AED b) & CAPEX/revenue % 5.9 18% 4.3 13% 14% 11% 1.11.93 FY'1 FY'11 Q1'11 Q1'12 Capex in the UAE focused on network quality improvement, FTTH & deployment of LTE network LTE population coverage reached 85% in UAE Operating cash flow improved to AED 1.4 billion (1) 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). 19
Dividend: stable dividend distribution record Bonus Share Cash Dividends (1) - AED million 1% 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 2
UAE: Maintained strong margins Quarterly FY 1 FY 11 YoY Q1 11 Q1 12 YoY Subs (1) (m) 4% 8.4 8.7 4% Revenue (AED m) 24,294 23,51-3% 5,985 5,788-3% EBITDA (AED m) 15,168 13,38-12% 3,674 3,416-7% EBITDA Margin 62% 57% -5pp 61% 59% -2pp Net Profit 7,419 6,32-15% 1,77 1,533-1% Net Profit Margin 31% 27% -4pp 29% 26% -3pp CAPEX 2,262 1,767-22% 57 47-18% CAPEX/Revenue 9% 8% -1pp 1% 8% -2pp Highlights Despite YoY growth in data/internet revenues, drop in voice revenues led to a 3% decrease in total revenues QoQ revenue grow by 2% and Etisalat contributed 74% to incremental revenue growth in the total UAE market. Sustained strong EBITDA margin despite negative impact of decrease in revenues Net profit impacted by higher depreciation costs and Federal Royalty charges Continued to invest in maintenance capex (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 Subs Market Share Revenue Market Share 7% 6% 62% 61% 6% 6% 55% 56% 7% 6% 66% 63% 63% 59% 59% 5% 5% 4% 3% 2% 38% 39% 4% 4% 45% 44% 4% 3% 2% 34% 37% 37% 41% 41% Etisalat Du 1% 1% % Q1'11 Q2'11 Q3'11 Q4'11 Q4'11 Q1'12 % Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Fixed (1) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 86% 86% 86% 85% 84% 14% 14% 14% 15% 16% Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 86% 85% 83% 84% 84% 14% 15% 17% 16% 16% Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Etisalat Du (1) Broadband subscribers and revenues included in fixed revenues (2) Source for subscriber numbers is TRA and companies reported numbers Etisalat s mobile subs is reported based on 9 days activities 22
8. 7. 6. 5. 4. 3. 2. 1...45.4.35.3.25.2.15.1.5. 16 14 12 1 8 6 4 2.9.8.7.6.5.4.3.2.1. 1.2 1..8.6.4.2. 25 2 15 1 5 UAE: Growth in high value subscriber (1) base Mobile Subs (m) & ARPU (2) (AED) Fixed Subs (m) & ARPL (3) (AED) 152 141 1.13 1.2 5.48 5.8 141 128 1.6 1.13 Q1'11 Q1'12 Q1'11 Q1'12 Postpaid Prepaid Blended ARPU Fixed ARPL E-Life Subs Double & Triple-Play (m) Fixed Broadband (4) Subs (m) +84% +8%.22.41.71.77 Q1'11 Q1'12 Q1'11 Q1'12 (1) Subscriber numbers calculated as aggregate number of GSM, fixed, dialup, fixed broadband and E-Life 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 1,8 1,6 1,4 1,2 1, 8 6 4 2 1.9.8.7.6.5.4.3.2.1 1.9.8.7.6.5.4.3.2.1 Egypt: Solid results despite difficulties Revenue (AED m) & EBITDA Margin 4,114 4,5 +22% +9.4% 35% 39% 37% 36% 987 1,26 FY'1 FY'11 Q1'11 Q1'12 Revenue EBITDA % CAPEX & CAPEX/Revenue ratio (%) -31% 1,571-39% 1,129 4% 25% 16% 1% 162 123 Highlights Despite political unrest, Strong revenue growth driven by customer acquisitions Continued high growth in mobile data usage Maintained leadership in share of market net adds High growth in mobile data usage Maintained strong EBITDA margin Lower capex due to difficulties in network rollout. Continued to invest in maintenance capex Improvement in operating cash flow FY'1 FY'11 Q1'11 Q1'12 CAPEX CAPEX/Revenue 24
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: High growth with improved margins Atlantique Telecom (1), Tanzania, & Sudan Subscribers (m) Revenue (AED m) / EBITDA Margin 7.6 +28% 9.7 +19% 2,141 2,549 +2% 17% 24% 563 678 13% 28% FY'1 FY'11 FY'1 FY'11 Q1'11 Q1'12 Revenue EBITDA % Highlights CAPEX & CAPEX/Revenue ratio (%) Atlantique Telecom posted strong growth in subscribers and revenues, along with improved margins 574 +19% 686 Favorable revenue impact from regional roaming and international call plans 184-63% Increasingly competitive market in Tanzania Improved operating cash flow 3G license in Ivory Coast 27% 27% 33% 68 1% FY'1 FY'11 Q1'11 Q1'12 CAPEX CAPEX/Revenue (1) Atlantique Telecom operates in Ivory Coast, Benin, CAR, Gabon, Niger and Togo. 25
8. 7. 6. 5. 4. 3. 2. 1.. 1,6 1,4 1,2 1, 8 6 4 2 1,6 1,4 1,2 1, 8 6 4 2 1.8.6.4.2 -.2 -.4 1.6 1.4 1.2 1.8.6.4.2 Asia: Solid results despite India Afghanistan, Sri Lanka, and India Subscribers (m) Revenue (AED m) / EBITDA Margin 6. +26% 7.6 983 +44 1,414-25% -13% +19% 378 317-3% -1% FY'1 FY'11 Q1'11 Q1'12 Q1'11 Q1'12 Revenue EBITDA % Highlights CAPEX & CAPEX/Revenue ratio (%) Strong revenue and subscriber growth in Sri Lanka and Afghanistan Deconsolidation of India in Q1 12, impacted YoY 1,379 14% -52% 655 +41% 54% 64% comparison of EBITDA margin Excluding India, Annual EBITDA margin from high- 1 s to mid-2 s 3G license in Afghanistan 46% 173 243 FY'1 FY'11 Q1'11 Q1'12 CAPEX CAPEX/Revenue 26
25. 2. 15. 1. 5...39.38.37.36.35.34.33.35.3.25.2.15.1.5. (.5) (.1) (.15) 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) 15.79 19.77 38% 37% 4.12 4.98 35% 35% 4.39 4.91.98 1.18.14.23.29 FY'1 FY'11 Q1'11 Q1'12 (.12) Revenue Net Profit EBITDA % FY'1 FY'11 Q1'11 Q1'12 Highlights YoY data revenues increased by 59% in 211 Mobile broadband subscribers increased by 2.3M in 211 reaching to 8.7M Net profit improved by 21% in Q1 212 SAR 3.25 dividend per share for fiscal year 211 (Etisalat s share: AED 6M received) SAR 1. dividend per share for Q1 212 (Etisalat s share: AED 179M received) Highlights Better Margins from associates 3G license auction expected in Pakistan in 212 Consumer fixed broadband segment; key growth catalyst in Pakistan Strong subscriber and revenue growth in Nigeria Possible MNP in Nigeria during 212 Stable returns from Indonesia (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%) (3) Average AED forex rates used in 211 are: USD 3.674; SAR.986; IDR.419; PKR.452 27
Etisalat Investor Relations Tel: +971 2 6184313 Email: ir@etisalat.ae Web site: www.etisalat.com ADX ticker: Etisalat ADX website: www.adx.ae 28