Orascom Telecom Holding Investor Presentation September 2013 - PowerPoint PPT Presentation

Orascom Telecom Holding Investor Presentation September 2013

Disclaimer This presentation contains forward-looking statements about Orascom Telecom Holding (“OTH”) . Such statements are not historical facts and include expressions about confidence and strategies of management and expectations of management about new and existing programs, technology and market conditions. Although OTH believes its expectations are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties. These statements may not be regarded as a representation that anticipated events will occur or that expected objectives will be achieved. The forward-looking statements in this presentation are only valid until the date of this document and OTH does not undertake to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. This presentation is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any offer or sale of securities in any jurisdiction in which such offer or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Page 2

Content  2Q13 Highlights 4  Shareholder Structure 5  Global Presence 6  Market Position 7  OTH Operations 8  Appendix 22 Page 3

2Q13 Highlights Group EBITDA 3 & EBITDA Margin Subscribers 1&2 Total Revenues 3 50.5% 934 48.5% 904 86 83 470 438 +2% +1% Organic Organic 2Q12 2Q13 2Q12 2Q13 2Q12 2Q13 Djezzy 1 : decreased 1% YoY to 16.8 million Group revenues were adversely impacted by Group EBITDA increased 2% YoY organically, customers, as a result of the on-going ban and the local currency devaluation against the USD assuming constant FX rates and after regulatory constraints that limited our ability mainly in Algeria and Pakistan excluding one-offs and restructuring costs to compete effectively Djezzy: increased 3% YoY in local currency, Djezzy: increased 2% YoY in local currency, Mobilink: increased 3% YoY to 37.1 million driven by higher voice revenues following the driven by growth in top line customers, as a result of churn management changes made to the communication Mobilink: decreased 1% YoY in local currency, coupled with changes implemented to the messages of existing offers negatively impacted by the fine imposed on all distribution structure during 1Q13 and the Mobilink: grew 5% YoY in local currency, operators with regards to the suggested continued focus on reactivation offers driven by higher interconnect, VAS, data and clearing housing for international termination, banglalink: grew 6% YoY to 27.1 million other revenues and a higher subscriber base in addition to higher power utilities expenses customers, driven by high gross additions and resulting from power outages banglalink: decreased 14% YoY in local low churn rate currency, mainly driven by lower usage per banglalink: decreased 16% YoY due to subscriber, affected by the application of the pressure on revenues that resulted from regulatory directives of disconnecting VoIP lower usage per subscriber, related to the customers, and partially offset by higher disconnection of VoIP customers, despite interconnection and VAS revenues savings on structural OPEX 1.As announced on July 1 st 2013 , during an internal investigation with regards to Djezzy’s active subscribers, management found a technical bug that overstated Djezzy’s subscriber base by 1.4 million customers. The subscribers’ base comparative figures were adjusted accordingly. This event does not impact historical reporte d revenues or EBITDA, but positively affect MOU and ARPU. 2.Total subscribers in Millions 3.Group indicators in USD Millions Page 4

Shareholder Structure VIMPELCOM FREE ALTIMO TELENOR FLOAT 56.2% (Economic) 33.0% (E) 10.8% (E) 47.9% (Voting) 43.0% (V) 9.2% (V) OTH FREE FLOAT 100.0% 100.0% 100.0% 51.9% 48.1% OJSC WIND ITALY OTH KYIVSTAR VIMPELCOM Page 5

Global Presence OTH serves a population of approximately 459 million with an average penetration of 53% CANADA PAKISTAN Population: 35 million Population: 193 million GDP Growth: 1.8% GDP Growth: 3.7% GDP/Capita PPP ($): 43,400 GDP/Capita PPP ($): 2,900 Pop. Under 15 years: 16% ALGERIA Pop. Under 15 years: 34% Mobile Penetration: 72% Mobile Penetration: 65% Population: 38 million GDP Growth: 2.5% BANGLADESH GDP/Capita PPP ($): 7,600 Population: 164 million Pop. Under 15 years: 28% GDP Growth: 6.1% Mobile Penetration: 84% GDP/Capita PPP ($): 2,100 Operations owned by Orascom Pop. Under 15 years: 33% Telecom (OTH has 65% indirect Mobile Penetration: 64% economic ownership in Globalive Investment Holding Canada , but a minority voting stake) BURUNDI CENTRAL AFRICA REPUBLIC Population: 11 million Population: 5 million GDP Growth: 4.0% GDP Growth: 4.1% GDP/Capita PPP ($): 600 GDP/Capita PPP ($): 800 Pop. Under 15 years: 46% Pop. Under 15 years: 41% Mobile Penetration: 20% Mobile Penetration: 18% ZIMBABWE Population: 13 million GDP Growth: 4.4% GDP/Capita PPP ($): 600 Pop. Under 15 years: 39% Mobile Penetration: 68% Note: Figures from CIA Fact book. Mobile Penetration is based on June 30, 2013 subscriber figures and market share. Page 6

Market Position Algeria: Despite limitations, Djezzy remains a profitable market leader with tremendous data potential Pakistan: Mobilink leads the maturing market, and with a large customer base has great potential for revenue enhancement through data, MFS and VAS uptake Bangladesh: In a large market with low penetration levels, banglalink is one of the fastest growing operators with a strong focus on increasing value share Telecel Globe: Leading positions in markets with low penetration levels, healthy APPM, and high growth potential. Internet is a mobile story in Africa Canada: Wind Mobile continues its "Value Plus" strategy execution, adding primarily postpaid subscribers while carefully managing prepaid economics for both voice and mobile broadband customers Page 7

Algeria Page 8

Djezzy Overview  GDP growth rate for 2012/2013 stood at 2.5%  Young population: 28% of the population under 15 years of age Macro  Government , trade and agriculture sectors account for over 60% of Algeria’s GDP Environment  Hydrocarbons have long been the backbone of the economy, accounting for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings Population: 38 million GDP/capita: USD 7,600  OTA continues to face stringent conditions from regulator (ARPT) regarding critical promotions and products  3G licensing process officially started on August 15 th 2013; deadline for submitting the bids is September Market Size 1 : 32 million subs 15 th ,2013. The preliminary award of the three licenses is scheduled for October 15 th 2013, with a launch date Penetration 1 : 84% on December 1 st 2013 Regulatory  The Algerian government intends to inject DZD 140 billion (approx. € 1.4 billion) in the coming financial Environment Market Players (subscribers): complementary law for 2013 as an additional telecom budget dedicated to develop ICT imports of mobile  Djezzy 16.8 million handsets  Mobilis 8.0 million  Creation of “CIT”, a joint venture between AT, SONATRACH SNTF (pubic railroad company) and SONELGAZ  Wattaniya 7.2 million (electricity and gas), to invest, develop and manage a network of fibre optic cables across Algeria  Djezzy: High brand perception and price premium position with solid market leadership and high control and negotiation power over distribution channel Market Shares 2  Mobilis: Public and historical operator that is maintained by the government and has a strong relationship with Competitive Landscape the regulator and has been very active on the commercial front lately  Wattaniya: Seen as a multimedia operator that offers better prices, more promotions, subsidies and higher OTA 22.5% incentives to the channel Mobilis 52.5%  Balanced value pricing strategy leading to stable ARPU levels 25.0% Wattaniya  Consolidate Djezzy brand leadership and strengthen emotional bonding with customers Strategic  Increase quality and control over the distribution channel Direction  Define leaner site configurations through tighter design guidelines to manage CAPEX requirements  The mobile data market is expected to emerge and grow at a fast pace when 3G services are launched at the end of 2013 1. Penetration figures are provided based on OTA closing base and our Data Warehouse (DWH) figures for competition 2. DWH Market Share Page 9