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Your Future is

NICE – A growing business of ICT services

Mobile Africa Revisited, December 2010

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Points of discussion

Market needs

NICE-Concept

Socio-economics

Organization model

Status and planning

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Base of the Pyramid

Mature markets> USD 20,000

Emerging marketsUSD 1,500 - 20,000

Survival markets< USD 1,500

1.5 – 1.75 billion

0.7 - 1 billion

4 billion

NICE targets the Base of the Pyramid, people living on less than USD 4 per day

The BoP is increasingly seen as a large consumer market with specific needs

Note: Income based on purchasing power parity in USD

Source: UN World Development Reports

Bottom of the Pyramid

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587 million people (71.5% of population) in Sub-Saharan Africa do not have access to electricity

Electrification rates (%, IEA 2008)

0

10

20

30

40

50

60

70

80

90

100

Urban Rural

Electricity is a crucial enabler for personal and economic development

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Decentralized renewable energy is considered to be the best option for rural electrification

• Abundance of renewable energy sources

• Environmentally friendly

• Less expensive than building a grid

• Reduce dependency from imports of oil and gas

Reasons for using renewable energy

The main barrier for decentralized renewable energy is the investment cost

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The huge potential of Internet-based economic growthin developing countries is largely untapped

% GDP growth with 10%-point increase penetration technology (World Bank, 2009)

Internet-users per 100 people (World Bank, 2009)

0

10

20

30

40

50

60

70

80

90

Ta

nza

nia

Rw

an

da

Gh

an

a

Su

b-

Sa

ha

ra

Afr

ica

Za

mb

ia

Ga

mb

ia

Ne

the

rlan

ds

There are a number of barriers that explain the low use of Internet

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A number of barriers explain the low penetration of Internet in developing countries

• Cost of hardware

• Cost Internet-connectivity

• Lack of stable electricity supply

• (Computer) illiteracy

• Lack of relevant content

Barriers to Internet-penetration

Internet connectivity is improving with the deployment of fiber-optic submarine cables around Africa

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Points of discussion

Market needs

NICE-Concept

Socio-economics

Organization model

Status and planning

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To unleash the potential of people in developing countries

NICE is a proven franchise concept of centres that provide access to energy and ICT

• Passion for development

• Empowerment

• Entrepreneurship

• Innovation

• Customer care

• Togetherness

Core values

• State-of-the-art technology

• Extreme energy-efficiency

• Standardized and scalable

• Branding

• Pay-per-use services

• Distribution channel for BoP-products and services

• Franchise including equipment lease

Characteristics NICE-concept

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This is a clean and stable source of energy that makes the NICE-centers independent of the grid, provides a power back-up and produces a

stable electricity supply

NICE-centres use advancedsolar energy systems

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The infrastructure is stable, scalable and can be centrally maintained

The computer rooms offer Internet-access through astate-of-the-art ICT-infrastructure

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This makes it possible to show all sorts of content to larger audiences

The cinema has multiple TV-screens that are linked to satellite-TV, DVD and PC

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Infrastructureservices

Value addedServices

Income generation Time

Valu

e a

dded

BrowsingCommunicationTV

EducationBusinessBankingHealth

Online tradingOutsourcing Incubator

Batterycharging

Energyservices

As a distribution channel to BoP customers, NICE supports local people in their personal and economic development

NICE-services are sold on pay-per-use basis based on local market demand

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2000 education courses have been provided in NICE-centers since November 2007

For some education courses, NICE has organized scholarships in collaboration with NGOs

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Points of discussion

Market needs

NICE-Concept

Socio-economics

Organization model

Status and planning

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NICE centres are perceived male areas

Female and males roles are essential to the success of the business

• Taking care of household and

children

• Marriage at young age

• Income gaining activities

• Clusters and community activities

Female roles

• Go out and struggle for a living

• Little job opportunities

• Marriage at late age

• Aiming for Europe

Male roles

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Male come to struggle, women come for development (of children)

Socio-economic characteristics are core to the success of the NICE business

• Male between 15-40

• Literate

• Looking for friendship and luck

• Window to the world

• Women: education

Customers at NICE

• Western initiative and management uplifting standards/ local investment

• Efficiency an planning sustainability/ franchising (local entrepreneurship)

• Hierarchy top-down vs bottom-up job opportunities

• Gender division creating awareness and involving women

Socio-economics and NICE

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Points of discussion

Market needs

NICE-Concept

Socio-economics

Organization model

Status and planning

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NICEInternational BV

NICECenter

NICE Country Organization

The NICE organization model has three layers, each with its own role

Country level

Ownership and development brand and concept

Invest in and supervise country organizations

Acquire funding

Procure equipment

Develop product

Develop international partnerships

Develop and manage network of NICE-centers

Technical and business support franchisers

Install and maintain equipment

Perform national marketing

Provide training to franchisers

Develop products and local partnerships

Operate NICE-centre

Perform local marketing & sales

Perform local maintenance of equipment

Master franchise

Franchise

Partial ownership

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• Proven technology concept

• Low investment

• Strong brand

• Business and technical support

• Portfolio of value added products and service

• (Financial) sustainability

Benefits franchisers

NICE combines franchising with leasing; current franchisers are independent entrepreneurs

and former staff

Franchising concept

• For each NICE-centre

• Right to use concept and brand

• Access to portfolio of services

• Business and marketing support

• Training and coaching

• Sales-related franchise-fee

Leasing concept

• Franchiser provides location and furniture

• NICE provides equipment on operational leasing basis

• NICE responsible for installation, maintenance and support

• Lease fee related to value equipment

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Points of discussion

Market needs

NICE-Concept

Organization model

Socio-economics

Status and planning

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Centres are making profit and customers are very satisfied with the services

Customer satisfaction NICE - 2010Average monthly centre cost and revenues (EUR)

NICE centres are a sustainable tool for development

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In The Gambia, NICE has 6 centres operational and the intention to expand to 20 centres

Current and planned locations The Gambia

Sibanor

Existing NICE-centers Planned NICE-centers

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Ambition?????

NICE was planning to roll-out to Tanzania and Zambia, followed by other countries

• To become the biggest franchise chain in Africa in 2020 with:

– 250 NICE-centres

– In 10 countries

– Serving 750,000 customers

– And bringing benefit to their 7.5 million family members

TUNISIA

MOROCCO

SAHARA

ALGERIA

MAURITANIA

MALI NIGER

LIBYA

CHAD

Sea

EGYPT

SUDAN

ETHIOPIA

DJIBOUTI

ERITREA

SOMALIA

KENYA

TANZANIA

DEMOCRATIC

(ZAIRE)

CENTRAL

RWANDA

GABON

EQUATORIAL

ANGOLA

CONGO

NIGERIA

BENIN

DTVOIRE

SIERRA

SENEGAL

GHANA

THE

GUINEA

LIBERIA

CAMEROON

SOUTH AFRICA

MALAWI

ZAMBIA

MOZAMBIQU

E

MADAGASCARZIMBABWE

BOTSWANA

SWAZILANDLESOTHO

NAMIBIA

ANGOLA

WESTERN

Red

UGANDA

OF THE CONGO

REPUBLIC

BURUNDI

GUINEA

REP. OF

TOGO

COTE

BURKINA

GUINEA

LEONE

BISSAU

Walvis Bay

SOUTH

REPUBLIC

AFRICAN

THE

AFRICA

GAMBIA

Operational countries

Target countries 2011-2012

Other target countries

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Contact

Lonneke Craemers

Business Development Manager

NICE International BV

Mob: +31 6 52535387

Lonneke.Craemers@nice-international.com

www.nice-international.com