Bahrain Telecommunications Company B.S.C Annual General Meeting

Forward looking statement – important note The following presentation contains forward looking statements by the Management of Bahrain Telecommunications Company (Batelco), relating to financial trends for future periods, compared to the results for previous periods (the statements). The statements:

 contain expressions of future expectations or opinions (including but not limited to the financial conditions, results of operations and businesses, and related plans and objectives of Batelco), which are based upon Batelco‟s current views and best estimation having regard to current information, prevailing uncertainties in the market place and an ever changing regulatory environment and other factors, many of which are outside Batelco‟s control;

 are based upon information and assumptions known to date and are subject to various known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in the statements as originally made;

 include projected performance targets of Batelco; and  should not be construed as a representation, forecast or projection as to future performance of Batelco as the actual performance of Batelco may vary significantly from such targets and consequently you should rely upon your own enquiries, evaluation, and analysis in relation to the statements. Where reference is made in the presentation to “BD” it means Bahraini Dinars and “USD or $” means US dollars unless otherwise indicated. Any discrepancies between individual amounts and totals are due to rounding.

2

Today, Batelco Group operates…. ……across multiple geographies! Bahrain

Headquarters: Hamala

Jordan

KSA India

Sale to be completed by Q4 2012

Yemen

Investments

Kuwait

Associates

Subsidiaries

International Operations

Associate held for sale

Revenue

37%

Source: Batelco

EBITDA

31%

Contribution to Group (1) Totals and Percentages may vary due to rounding

(1) Before inter-company eliminations

3

2011 Group highlights

Group Performance

Subscribers

Employees

Revenue

BD 327m

>11,000,000

Net Profit

Mobile growth

BD 80m

21%

BD 108m

Net Cash Pos.

Broadband growth

8%

Arabian Business “GCC Top 10 Employer Awards” - Ranked # 4

Leadership Development for Execs, Senior & Middle Management & Rising Stars

Technology/ Innovation Corporate Governance Compliance with the provisions of CBB‟s corporate governance requirements

Totals and Percentages may vary due to rounding

4G/LTE Trials

Fiber roll-out

IPTV

Investment Grade Ratings S&P

Fitch

Corporate Social Responsibility BD 2.1m 4

1. 2011 Results Review

5

Resilient performance Year on Year Whilst results in 2011 were impacted by competitive pressures in the local market, EBITDA with a healthy 39% margin and Net Profit remain resilient 12 months ended Dec 2011

12 months ended Dec 2010

Change FY 2011/ FY 2010

Operating Revenue

327

340

(4%)

Entrant in Bahrain

EBITDA - margin

126

146

(14%)

 Retention of High

39%

43%

Depreciation & Amortization

38

40

(4%)

Operating Profit

88

106

(17%)

Net Profit - margin

80

87

(8%)

24%

26%

EPS (fils)

55.6

60.3

BD M

Totals and Percentages may vary due to rounding

 Impact of New

Value Customers

(8%)

 More Value to

Customers  Cost Optimization

slower than Revenue decline

6

Revenue and Profit Contribution Revenues diversified by segment & internationally...... Gross Revenue by Geography (after inter-segment eliminations)

Profit (1) (2) BDM

BD M

Bahrain Jordan Other Countries Total

Var

2011

2010

202.9

222.7

9%

88.9

87.6

1%

35.2

30.0

17%

327.0

340.3

4%

(1) Total Profit refers to Profit before Non-Controlling Interest (2) India classified as Held for Sale from Q2 2011 Totals and Percentages may vary due to rounding

2011

2010

Var

Bahrain

67.8

86.0

21%

Jordan

13.6

11.8

15%

Other Countries

2.4

(7.2)

133%

Total

83.8

90.6

7%

Group profitability remains strong despite impact of competition in Bahrain. 7

Continued strong cash generation…. High EBITDA conversion

73% Unlevered Balance Sheet ….and unlevered Balance Sheet!

Free Cashflow (BD’M) Debt as at end 2011

75%

NIL

120

BD109m

73%

110

Net Cash position BD M

BD 108m

BD91m

100

24%

90

80

70

Investment Grade rating

60 2010

S&P

2011

Fitch

% EBITDA Conversion

Group

Strong Free Cash flow generation Totals and Percentages may vary due to rounding

8

Group subscribers at record high!

YoY Mobile Growth

YoY Broadband Growth

21%

8%

+10%

120,000 10,623k

+1% 114,084

8,809k Subscribers

Subscribers („000)

100,000

5,146k

Wireless Growth +51%

80,000 89,396 60,000

+4%

40,000

+36%

20,000

40,045 25,592

Bahrain

Totals and Percentages may vary due to rounding

Jordan

Kuwait

Saudi

9

Recognized for excellence throughout 2011 Group awards and honours  

World Brand Congress, Brand Leadership Award

CommsMEA, Telecoms Technology Award



Middle East Investor Relations Society, Best Listed Bahrain Company for IR



Tatweej Academy, Award for Excellence among ISO Certified Companies 

LAPC Vision Awards, Silver Award for Annual Report 2010

10

HR – ongoing development of local talent

Our Commitment Awarded Arabian Business “The GCC‟s Best Employers 2011 ” Ranked # 4

GCC HR Excellence Awards, GCC Best Talent Management

Leadership Development 32 Executives 46 Managers 31 Middle Managers 25 Rising Stars

11

Commitment to CSR & the community BD 2.1 million spent on CSR in 2011 Support for health, social, education and sports initiatives

12

Sustained strong dividends Over the last 7 years, BD 461M in total …….. representing an average payout of 71%! 450

64.8

417

400 359.4

72 350

250 200

294.6

72

300

(BD M)

Cumulative Cash Dividend

57.6*

48 57.6

222.6

150.6

150 102.6 100 50

45

0 2005

2006

2007

2008

2009

2010

2011

BD 417M in cash dividends & BD 44M equivalent face value bonus shares( for FY 2005 & 2007) *2011 Final Dividend subject to approval by shareholders.

Board has proposed to AGM a total dividend of BD57.6 million (US$152.8 million) which represents a 72% payout of 2011 Profit at a value of 40 fils per share, of which 20 fils per share was paid in July 2011. Totals and Percentages may vary due to rounding

13

2. Group Strategy

14

Strategy Focus 2012-2015 4 Strategic Priorities

1

New Customers

Existing Customers (Bahrain, Jordan, Kuwait, India, Yemen, KSA)

“B-Scale” KEY GROUP FOCUS

Increase wireless scale in new markets

3

“B-Scope”

Position in Telco adjacent ICT space (SME & Enterprise)

4

“BInnovative”

Innovation Development and Incubation

2 “B-Strong” KEY OPCO FOCUS

Drive growth by strengthening current business, releasing cash, & building capabilities

Connectivity

Solutions (Enterprise, Consumer)

Source: Batelco

15

2012 Key initiatives 1. New Acquisition 2. India - STel:  Complete sale by Q4 2012, and  Continue to look for opportunities in the Indian telecommunications market. 3. Jordan – Umniah: Launch 3G by Q3 2012 4. Saudi – Atheeb:  Support company transformation into B2B provider  Participate in Rights Issue 5. Bahrain – Batelco:  Focus on retention of High Value Customers – GEAR  Cost benchmarking & reduction program

3. 2012 Guidance

17

2012 Guidance Measure

Guidance

Revenue

Low single digit decline

EBITDA

Mid single digit decline

Net Profit

Capex to Revenue FCF Dividends subject to AGM

Margins under pressure from intense competition in Bahrain

Double digit % increase reflecting oneoff gain on STel disposal (Q4 2012) ~25% (~ 12.5% excl 3G) > USD 110m

Affected by one time investment in 3G licence and infrastructure in Jordan

Payout consistent with past trend

18

More information Batelco Investor Relations Principal Analyst, Investor Relations

Telephone Fax e-mail

+973 17884557 +093 17611898 [email protected]

Telephone

+973 17884557

Fax e-mail

+973 17611898 [email protected]

Batelco Media Relations Group General Manager Media Relations

Bahrain Telecommunications Company B.S.C Annual General Meeting