Who are we? Millicom Highlights 25 years of emerging markets - - PowerPoint PPT Presentation

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Tigo Cash : Mobile Transfer for Emerging Markets Steven Jurgens Head of Region & Group CSR November, 2008 Millicom International Cellular S.A. Who are we? Millicom Highlights 25 years of emerging markets history Luxembourg

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Tigo Cash: Mobile Transfer for Emerging Markets

Steven Jurgens Head of Region & Group CSR Millicom International Cellular S.A. November, 2008

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Who are we? – Millicom Highlights

25 years of emerging markets history
Luxembourg company; Swedish heritage;
16 countries – Latin America, Africa & Asia ; > 30 million subscribers
Triple-A strategy

– Affordability:

Low denomination reloads

– Accessibility:

Ease of purchasing minutes

– Availability:

Extensive & good network coverage
One global brand: Tigo
Use of proven technology – broad range of services
Employs + 6,500 people (+100% from 2006)
Revenues of 2.6 billion US$ & Investments of 1 billion US$ in 2007
Listed on Nasdaq 100 – market capitalisation of approx. 5 billion US$
Part of MSCI (Morgan Stanley Capital International) World index

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What does Tigo Cash do? – Our business model

Churn avoidance G-Cash customers in Philippines show 80% lower churn rate vs. regular mobile users. Payment & remittance Services Tigo Cash makes profit from transaction fees. $250 Bn of intl remittances globally (WB, ‘06) and national remittances Airtime self top-up Tigo saves commission to distributive trade when customers buy airtime via self top-up

Going beyond making a profit… …and starting to make a difference

Providing banking and remittance services to the poor:

Micro-payments

The debit card for low rollers

National remittances

Mobile to mobile

International remittances

Online / Outlet to mobile

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Transaction

fee

Lower cost
Smaller amounts
Safer than informal

channels

Cash-in fee
Cash-out fee

National Remittances

Tigo customer service and

sales shops

Churn

avoidance

Loyalty
Revenue
Reduced cash handling
Security
Airtime promotions
Loyalty club with benefits
Reduced cash

handling

Security
Customer

traffic Mass Market retail services

FMCG supplier is paid with

Tigo Cash by the retailer

Retailers sell grocery

products for Tigo Cash

Lower cost
More cash-out points
Spend directly with Tigo

Cash

Air time promotions
Loyalty club with benefits

TIGO Customer benefit

Transaction

fee

Cash-in fee
Cash-out fee

International Remittances

Tigo customer service and

sales shops

Churn

avoidance

Loyalty
Revenue
Lower

Commission vs. credit / debit cards Payments

High end retail services (gas

stations, malls) Millicom benefit Retailer benefit TIGO CASH Product

What are the benefits? – Sharing the value pie

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09/XX/07

Network of payment: more than 1500 collection points. Cash‐in and Cash‐out in their branches

Netel

Oil Company. Cash‐in and Cash‐out in their shops and payment of products. Sale of Aprobados tickets and E‐pin

Petrosur

Oil Company. Cash‐in and Cash‐out in their shops and payment of products. More than 230 base stations (’09)

Lubripar

Escrow Account

Citibank

The largest supermarket chain in Paraguay with 13 branches

Hiperseis

Games in local popular TV program.

Aprobados

Chain of POS

Inverfin

FMCG, Tigo Cash will be the way to collect payments. (‘09)

Unilever

Oil Company . POS

Barcos y Rodados

Coca Cola in Paraguay. Tigo cash, will be the way of pay of it direct sales

Pares

Local largest beer distributor: will use Tigo cash to collect payments from the points of sale.

Cervepar

Aspirational businesses to contact our young audience

B King, Pizza Hut, etc.

Interact bank account and electronic wallet (Tigo Cash).

Banco Continental

Microcredits in main cities and countryside.

Fundación Paraguaya

Cash‐in and Cash‐out. International remittances

Financiera El Comercio

Description Name of sub‐project

Who are we working with? – Our partners

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Benefits

For Microfinance Institutions:

Less time and admin costs
Instant receipt of loan
Avoids risk of money transport

For Customers:

Avoids cost and risk to pick up money
Easy to check debt status
Avoids risk and cost to pay back loan

How does it work? – Tigo Cash and Micro-credit

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