1 Investor Relations

Kuwait Telecommunications Company K.S.C.P

Investors Presentation

FY-2018

2 Investor Relations

Table of content

Key Milestones 4

Competitive Strengths 8

Shareholders' Structure 6

VIVA’s History in Brief 3

Vision and Values 5

Market Share 9

Population & Penetration 7

Financial Results 11

Stock Performance 14

Appendix – Balance Sheet & Income Statement 15

Financial Highlights 13

3 Investor Relations

2007 Jun 2008 Sep 2008 Dec 2008 Dec 2014

Emiri decree number 187/2007 was released regarding the license of the incorporation of Kuwait Telecommunications Company.

The incorporation contract and principal law of the company was adopted by the MOC and Fatwa and Legislation Dep., and documented at the Ministry of Justice

Public placement of VIVA shares which was 2.4x oversubscribed. distributed among c. 1 million Kuwaiti shareholders

Commercial Launch of VIVA Operations in Kuwait

VIVA Stock was listed on Boursa Kuwait

*In Compliance with the Islamic Shariah rules and principles

VIVA’s History in Brief

4 Investor Relations

Launches commercially

VIVA abolishes incoming calls fees and other operators follow

First Operator in the world to have all IP network

Expand retail network and launch joint promotions with retailers.

VIVA wins CommsMEA Best Telecom Finance Deal .

VIVA launches Elite Program for loyal, VIP and high value customers.

VIVA turns into profitability during the fourth year of operation.

VIVA Starts deployment of 4G LTE network

Best Telecom Company by Arabian Business.

Member of (ITU )

Leading Corporate for IR

Business Innovation in Risk Management

Partnership with Real Madrid.

Listing on KSE

Retained earnings turned to be positive.

Ranked 2nd in terms of revenue and subscriber market share

VIVA introduces high speed Mobile Broadband in Kuwait.

VIVA launches innovative prepaid offerings and acquire 500K customers in one year.

First to introduce Apple iPhone

Strategic partnership with Manchester United.

First to introduce newest HSPA+ (42.2 Mbps) Broadband network.

Complete nationwide 4G LTE Coverage and awarded Best LTE Deployment in the Middle East.

Number Portability and VIVA acquires majority of ported numbers between operators.

The first in Kuwait to introduce the all-new (VoLTE) technology.

VIVA Branches network reached a total of 70 across Kuwait.

First to introduce the LTE Advanced

2009 2011 2013 2015

2008 2010 2012 2014 2016

VIP Customer Service Award

"2017 Speedtest Award“

Excellence in Governance Award

Best Operator Network

5G Innovator of the Year Awards

2017

Key Milestones

Best Network Development Award at 5G MENA

VIVA Reap Three Accolades at ME Call Centre Awards

VIVA Recognized as Leading Corporate for Investor Relations in Kuwait 2018 -third in the MEA

Signing of an initial agreement for the sale and purchase of QualityNet shares

VIVA Wins "Advertising Creativity Award" at Arab Media Forum

2018

2019 VIVA wins Sharjah Gulf

Top 10 Business Award 2018.

5 Investor Relations

Our vision is to provide unique services and productsthat satisfy the aspirations of our clients andaccommodate their needs, which in turn will earn ustheir trust. This is through presenting our customerswith numerous telecommunications opportunities withthe goal of boosting our relationships with them andgiving them the best experience around the clock.

Our vision is embodied in a fundamental and detailedunderstanding of the Kuwait market and focusing on theneeds of customers in everything we say and do.

We have pledged to work to enrich the lives of ourcustomers through telecommunications, entertainmentand information, and data transfer services.

EnergeticOur passion is performance, innovation, and

delivering of superior quality. We are efficient, reliable, and highly responsive to

our clients’ needs.

TransparentWe are open, trustworthy and collaborative.

EngagingAll of our activities revolve around our

customers.

FulfillingWe offer a wide range of easy to understand products. Our actions create value, helping our customers lead more rewarding and

enjoyable lives

Our Values

Vision and Values

6 Investor Relations

The Kuwaiti government holds 24%of VIVA through differentgovernmental entities.

Currently 2 out of 7 board membersare representing the Kuwaitigovernment bodies.

Kuwaiti Government 24%

Public Share holders consists ofcompanies, portfolios, funds andindividuals.

The public shareholders are mixbetween local, regional andinternational investors.

Independent Board member electedduring the AGM on 16th of May 2016.

Public Shareholders 24%

STC, the leading regional telecomoperator, won the bid for third mobilelicense in November 2007, and paid USD980 million for the license.

STC has a management agreement withVIVA.

STC increased its ownership percentagefrom 26% to 51.8% through a VTO at thebeginning of 2016.

Currently, 4 out of 7 board members arerepresentative of STC group.

Saudi Telecom 52%

Shareholders' Structure

7 Investor Relations

Kuwait Population (Million Person) & Penetration Rate (%)

Kuwait population since 2010 is growing at the same level of 2.8% yearly and the growth is forecasted by IMF at 2.8% over thenext 5 years compared to almost 1% for the global population growth. This growth coupled with rising income levels will propelgrowth in consumer spending.Kuwait boasts the highest telecom penetration levels in the MENA region, which stood at the end of 2017 at 201% and estimatesby VIVA shows that the penetration rate in Kuwait declined to reach 193% at the end of Dec 2018.

Population & Penetration

3.2 3.4 3.4 3.5 3.63.7 3.8 3.9 4.0 4.1

4.3 4.5 4.6

50% 57% 57%

93%

133%155% 150%

189%

218% 220% 227% 201% 193%

0%

50%

100%

150%

200%

250%

0.0

1.0

2.0

3.0

4.0

5.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

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Relationship with STC

Customer-Centric

Strategy

Strong Growth & Results

Successful Branding

Modern & Scalable Network

Extensive distribution

channels

VIVA follows a customer-centric strategy, whichentails focusing on the communication needs ofcustomers and providing differentiated service. Thisstrategy positions VIVA as the only telecom providerin Kuwait that targets enhancing customerexperience.

VIVA has a proven track record of successfullyproviding high-quality product and services to itscustomers.VIVA has grown rapidly since it commencedoperations in December 2008 acquiring 2.2 millioncustomers by the end of December 2018, whichrepresents a market share of 31%.

Since its launch in 2008, VIVA has built a valuable brand associated with excellence.VIVA is perceived as the “challenger” bringing healthy competition to the Kuwait telecommarket. VIVA’s entry prompted the incumbent players to make several tariff changes, focuson subscriber retention and introduce new services, thereby benefiting the consumer.

VIVA benefits from having a modern and efficientnetwork that is adaptable to emerging technologies.The Network backbone is modern and has beendesigned to facilitate scalability of new operationsand the future deployment of emerging technology.

STC (the largest telecom company in the region) will continue to be a major shareholder andVIVA will continue to benefit from being a member of the STC group.Through this relationship, VIVA has access to technical support, industry best practice forprovision of telecom services, as well as stronger purchasing power benefiting from jointprocurement and coordination of regional initiatives.

VIVA has an extensive, well-developed andincreasingly sophisticated direct and indirectdistribution network covering all parts of Kuwait.VIVA Inaugurates New Branches to its networkamounting to a total of 93 branches across Kuwait

Competitive Strengths

9 Investor Relations

Total Subscriber Base in Kuwait (Mn)

Telecom Sector Revenues in Kuwait (KWD Mn)

Market Share

627 684 690 717

753 788 799 841 860

61 94 137 182 239 277 279 288 288

-

200

400

600

800

1,000

2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Telecom Revenue in Kuwait (KWD Mn) VIVA's Revenue (KWD Mn)

4.55.2

5.9 6.417.6 7.7 7.7 7.2 7.1

0.8 1.1 1.6 2.2 2.4 2.5 2.4 2.2 2.20

2

4

6

8

10

2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Subscirbers in kuwait (Mn) VIVA Subscribers (Mn)

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VIVA35%

Zain56%

Ooredoo*9%

Subscriber Market Share – Dec 2018

EBITDA Market Share – FY 2018

*Ooredoo Kuwait Financial Results are consolidated with Fastelco Results.

Market Share vs. peer groupRevenue Market Share – FY 2018

Net Profit Market Share – FY 2018

VIVA31%

Zain37%

Ooredoo32%

VIVA33.5%

Zain38.5%

Ooredoo*28.0%

VIVA31%

Zain46%

Ooredoo*22%

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Subscribers (Mn) Revenue (KD Mn) Net Profit (KD Mn)

In 2018, the company has applied IFRS 15“Revenue from Contracts with Customers“and IFRS 9 “Financial Instruments” whichare effective from 1st January 2018 andopted for full retrospective approach forthe 2017 numbers.VIVA’s revenue grew by 0.1% during theyear ended 31 Dec 2018 to reach KD 287.9million as compared to KD 287.7 millionrecorded during the year ended 31 Dec 2017.

VIVA’s EBITDA increased by 9.5% to reachKD 77.8 million during the year ended 31Dec 2018 with an EBITDA Margin of 27% ascompared to KD 71.1 million and margin of25% during the same period last year.

The net profit reached an historical level ofKD 50.4 million (EPS 101 fils) during FY2018 as compared to KD 42.8 million (EPS86 fils) in 2017, the increase in net profitattribute to the increase in revenues andalso due to cost optimization initiatives.

Shareholders' equity base stood at KD 192million at the end of Dec 2018 with agrowth rate of 22% compared to KD 157million at the end of Dec 2017.

Financial ResultsKey Figures & Ratios FY-2017 (Restated) FY-2018 Change

Subscribers (Mn) 2.3 2.2 -5%Revenue (KD Mn) 287.7 287.9 +0.1%EBITDA 71.1 77.8 +9.5%EBITDA Margin (%) 25% 27% +2.3pt.Net Profit (KD Mn) 42.8 50.4 +17.8%Net Profit Margin (%) 15% 18% 3.0pt.EPS (Fils) 86 101 +17.4%Equity (KD Mn) 156.9 192.0 +22%BVPS (Fils) 314 384 +22%

Dec-17 Dec-18

2.3 2.2

FY-2017 FY-2018

42.850.4

FY-2017 FY-2018

287.7 287.9

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Revenue (KD Million)

Net Profit (KD Million)CAPEX (KD Million)

EBITDA (KD Million)

Financial Highlights

*FY 2017 and 2018 numbers are based on the IFRS 15 ‘Revenue from Contracts with Customers “and IFRS 9 “Financial Instruments” which are effective from 1st January 2018 and opted for full retrospective approach. .

112.6

131.0 131.9

71.1 77.8

47% 47% 47%

25% 27%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0.0

50.0

100.0

150.0

2014 2015 2016 2017 2018

EBITDA (KWD Million) EBITDA Margin (%)

239277 279 288 288

050

100150200250300350

2014 2015 2016 2017 2018

17

39 38 33 31

7%

14% 14%12% 11%

0%

5%

10%

15%

20%

25%

30%

0

15

30

45

2014 2015 2016 2017 2018

Capex (KWD Million) Capex to Sales Ratio

40.4 43.0 39.8 42.850.4

0

20

40

60

2014 2015 2016 2017 2018

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Total Assets (KD Million) Total Debt / Equity (KD Million)

Book Value Per Share (KD)Shareholders Equity (KD Million)

Financial Highlights

*2018 numbers are based on the IFRS 15 ‘Revenue from Contracts with Customers “and IFRS 9 “Financial Instruments” which are effective from 1st January 2018 and opted for full retrospective approach. .

179 214

263 267 273 305

0

50

100

150

200

250

300

350

2013 2014 2015 2016 2017 2018

10

50

93

133 157

192

0

50

100

150

200

250

2013 2014 2015 2016 2017 2018

0.019

0.100

0.186

0.266

0.314

0.384

-

0.050

0.100

0.150

0.200

0.250

0.300

0.350

0.400

0.450

2013 2014 2015 2016 2017 2018

66

86 72

47

9 0

6.9

1.70.8 0.4 0.1

0.0 - 1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

0

20

40

60

80

100

2013 2014 2015 2016 2017 2018

Total Debt (KWD Million) Debt to Equity Ratio (x)

14 Investor Relations

Rebased Index Since VIVA’s Listing Date 14 Dec 2014 – Stock Performance vs. KSE and Telecom weighted Indices

Closing Price (KD) 0.800

Paid up Capital (KD Million) 49.9

Market Cap (KD Million) 400

PE (X) 7.77

PB (X) 2.08

Dividend Yield (%) 5.0%Data as of 31 Dec 2018

Stock Performance

60

80

100

120

140

160

180

Dec-14 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18

VIVA's Stock Price (KWD) KSE Weighted Index Telecom Weighted Index

Re

bas

ed

10

0In

de

x

Dividend Yield calculated based on the KD 0.040 Proposed for the year end 2018.

15 Investor Relations

Balance Sheet (2014 – 2018) Income Statement (2014 – 2018)

Appendix

16 Investor Relations

Balance Sheet 2014 2015 2016(restated)

*2017 2018KD Mn KD Mn KD Mn KD Mn KD Mn

ASSETSProperty and equipment 113.1 125.4 137.7 145.0 150.5 Intangible assets 36.3 50.6 47.5 - -Other non-current assets 0.7 - - - -Non-current assets 150.1 175.9 185.2 145.0 150.5 Inventories 5.8 7.1 4.4 12.9 6.9 Prepayments and other current assets 4.7 5.4 5.0 4.7 4.0 Trade and other receivables 21.2 22.9 25.7 31.2 35.8 Contracts assets - - 47.2 42.5 Cash and cash equivalents 32.3 51.8 47.2 32.2 65.7 Current assets 63.9 87.2 82.2 128.2 154.8 Total assets 214.0 263.1 267.4 273.2 305.4 EQUITY AND LIABILITIESShare capital 49.9 49.9 49.9 49.9 49.9 Statutory reserve 0.0 4.5 8.7 12.9 18.2 Voluntary reserve - 4.5 8.7 12.9 18.2 Retained earnings 0.0 33.9 65.4 81.0 105.9 Total equity 49.9 92.9 132.7 156.9 192.0

Employees' end of service benefits 2.6 2.8 3.2 3.6 5.3 Loans and borrowings NC 51.6 31.4 11.6 - -Non-current liabilities 54.1 34.2 14.8 3.6 5.3 Islamic financing facilities 34.0 41.0 35.5 9.0 -Trade and other payables 75.9 95.0 84.4 103.7 108.1 Current liabilities 109.9 136.0 119.9 112.7 108.1 Total liabilities 164.0 170.2 134.7 116.3 113.4 Total equity and liabilities 214.0 263.1 267.4 273.2 305.4

Balance Sheet (2014 – September 2018)

*2018 numbers are based on the IFRS 15 ‘Revenue from Contracts with Customers “and IFRS 9 “Financial Instruments” which are effective from 1st January 2018 and opted for full retrospective approach for 2017 numbers. .

17 Investor Relations

Income Statement 2014 2015 2016(Restated)

*2017 *2018KD Mn KD Mn KD Mn KD Mn KD Mn

Revenue 239.0 276.9 279.1 287.7 287.9 Operating expenses (65.5) (78.7) (80.9) (145.5) (139.3)Staff costs (15.9) (15.8) (18.0) (20.4) (21.7)Expected credit losses on trade & other receivables (4.1) (7.1) (9.0) (14.2) (18.2)Depreciation and amortization (67.6) (82.2) (88.4) (25.9) (25.6)

General and administrative expenses (40.8) (44.2) (39.2) (36.4) (30.6)Finance cost (Net) (2.3) (2.8) (2.1) (1.2) (0.1)Other income/(expenses) (1.8) (0.9) 0.4 0.9 0.7 Loss before BoD remuneration, contribution to KFAS and Zakat 41.0 45.2 41.9 45.0 53.0 KFAS (0.0) (0.4) (0.4) (0.4) (0.5)NLST (0.1) (1.2) (1.1) (1.2) (1.4)Zakat (0.5) (0.5) (0.4) (0.5) (0.6)BOD remuneration (0.2) (0.2) (0.2) (0.2) (0.2)Net Profit /loss for the period 40.4 43.0 39.8 42.8 50.4

Basic earnings per share (in fils) 81 86 80 86 101

Income Statement (2014–2018)

*FY 2018 numbers are based on the IFRS 15 ‘Revenue from Contracts with Customers “and IFRS 9 “Financial Instruments” which are effective from 1st January 2018 and opted for full retrospective approach for 2017 numbers.

18 Investor Relations

Thank youInvestor Relations Department:

E-mail: Investor.relations@viva.com.kwTel : +965 5000 1911www.viva.com.kw