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Morgan Stanley11th Annual Technology Media
& Telecoms Conference
November 2011
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Agenda
Global Footprint 3
Shareholder Structure 4
Market Position 4
Q3 Highlights 6
GSM Operations 7
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Global Footprint
Population Figures from CIA Factbook (est. July 2011).
Mobile Penetration is based on September 30, 2011 subscriber figures & market share
*excluding Canada and Lebanon
OTH serves a population of 515 million* with an average penetration of 48%
Operations owned by Orascom Telecom(OTH has 65% indirect equity ownership
in Globalive Canada but a minority
voting stake)
CANADAPopulation: 34 millionGDP Growth: 3.1%GDP/Capita PPP ($): 39,400Pop. Under 15 years: 16%Mobile Penetration: 70%
EGYPT
Population: 82millionGDP Growth: 5.1%GDP/Capita PPP ($): 6,200
Pop. Under 15 years: 33%Mobile Penetration: 93%
ALGERIA
Population: 35 millionGDP Growth: 3.3%GDP/Capita PPP ($): 7,300Pop. Under 15 years: 24%Mobile Penetration: 81%
PAKISTANPopulation: 187 millionGDP Growth: 4.8%GDP/Capita PPP ($): 2,500Pop. Under 15 years: 35%Mobile Penetration: 58%
BANGLADESH
Population: 159 millionGDP Growth: 6%GDP/Capita PPP ($): 1,700Pop. Under 15 years: 34%Mobile Penetration: 53%
NORTH KOREAPopulation: 24.5 millionGDP Growth: -0.9%GDP/Capita (PPP) ($): 1,800Pop. Under 15 years: 22%Mobile Penetration: 3%
ZIMBABWE
Population: 12 millionGDP Growth: 9%Pop. Under 15 years3: 42%Mobile Penetration: 58%
BURUNDI
Population: 10.2 millionGDP Growth: 3.9%Pop. Under 15 years: 46%
Mobile Penetration: 23%
CENTRAL AFRICA REPUBLIC
Population: 4.9 millionGDP Growth: 3.3%
Pop. Under 15 years3: 41%Mobile Penetration: 18%
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Shareholder Structure
4
ALTIMO TELENORWEATHER II
SHAREHOLDERS
VIMPELCOM
FREE FLOAT
OJSC
VIMPELCOMKYIVSTAR WIND TELECOM
OTH
FREE FLOAT
WIND ITALY OTH
31.4% (Economic) 31.7% (E) 18.8% (E) 18.2% (E)
100.0% 100.0% 100.0%
100.0% 51.7%
25.0% (Voting) 25.0% (V) 29.6% (V) 14.4% (V)
Former
WIND TELECOM group
48.3%
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Market Position
Algeria:Despite limitations, Djezzy remains a profitable market leader with tremendous data potential
Bangladesh:In a large market with low penetration levels, banglalink is the fastest growing operator in a rapidly-growing market
with strong focus on increasing value share
North Korea:koryolinks subscriber base shows tremendous growth driving higher revenues
Pakistan:Mobilink leads the maturing market, and with a large customer base has great potential for revenue enhancement
through data and VAS uptake
Telecel Globe:Leading positions in markets with low penetration levels, healthy APPM, and high growth potential. Internet is a
mobile story in Africa
Egypt:Mobinil is a pioneer in the Egyptian market with a large share of subscriber and growing data potential
Canada:Capitalize on a relatively low penetration rate, high ARPU market and WIND Mobiles subscriber growth
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97,252,491
108,937,709
3Q 10 3Q 11
Subscribers
Q3 Highlights
975,470
1,010,087
3Q 10 3Q 11
Revenues
397,144
480,858
3Q 10 3Q 11
EBITDA
Djezzy: increased 9% due to churn
management
Mobilink: increased 6% due tolocation-based and reactivation
promotions
banglalink: increased 22% due to
aggressive acquisition strategy
koryolink: increased 169% due to
increased coverage and penetration
Telecel Globe: increased 5% due to
rural penetration
Djezzy: lower sales cost, new
interconnect scheme and currency
appreciation led to 8% increaseMobilink: higher revenues and cost
efficiency measures led to 10%
increase
banglalink: revenue growth and
reduced SIM card costs led to 85%
increase, offset by currency
depreciation
koryolink: revenue growth led to
tremendous EBITDA increase
Djezzy: growing customer base,
currency appreciation led to 9.5%
increaseMobilink: growing customer base
and VAS revenues led to 5.5%
increase
banglalink: growing subscriber base
and currency depreciation led to 7%
increase
koryolink: growing subscriber base
led to 125% increase
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Algeria
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Macro-Environment
RegulatoryEnvironment
GDP growth rate for 2010 stood at 3.3%
Young population with 24% of the population under 15 years of age
Country-wide political stability Government, trade and agriculture sectors account for over 60% ofAlgerias GDP 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
Penetration rate at end of Q3 2011 stood at approximately 81%
*Penetration figures are provided based on OTA Closing base and DWH figures for competition** DWH Market Share
Regulated telecom environment under the ARPT
3G licensing process launched on September 19th, 2011
Ongoing ban on Djezzys foreign currency transfers preventing the payment ofessential suppliers, as well as the importing of equipment critical to networkmaintenance and necessary expansion
Djezzy is the market leader in a three-player market.
Djezzy: launched its operations in 2002, market leader, has a populationcoverage of 96%.
ATM: 1st entrant launched in 1999, rebranded their mobile business to Mobilis.
ATM is also the sole fixed line provider and owner of internet and internationalgateways.
Qtel: launched Nedjma in 2004. As challengers, Nedjma is a large contributor tomarket growth.
Competitive
Landscape
Platform to identify and develop young Algerian talentsCorporate SocialResponsibility
Population: 35 M GDP/capita: $7,300
Market Size: 28.25 M subsPenetration*: 81%
Market Players: Djezzy Mobilis
Nedjma
Market Shares **
Djezzy Overview
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22.54
11.45
19.05
6.69
1.39
2007 2008 2009 2010 9M2011
Strategic Direction
Balanced value pricing strategyleading to stable ARPU levels despitehigh market growth
Focus on data opportunity withinternet penetration at 14%
(est.2009)
Consolidate Djezzy brand leadershipand strengthen emotional bondingwith customers
Increase quality and control over thedistribution channel
Define leaner site configurationsthrough tighter design guidelines tomanage CAPEX demands
Mobile Subscribers (Millions) Revenues (Billions)
EBITDA (Billions) & EBITDA % CAPEX* (Billions)
13.3814.11
14.6215.09
16.29
2007 2008 2009 2010 9M2011
Note: foreign exchange rate DZD 72.5542/ USD 1*CAPEX figures excl. GSM licenses and may differ from previously released figures
Djezzy KPIs in DZD
125.50134.69 135.60
129.26
101.79
2007 2008 2009 2010 9M2011
77.26
83.75
78.16
72.50
60.29
61.57%62.18%
57.64%
56.09%
59.23%
53%
54%
55%
56%
57%
58%
59%
60%
61%
62%
63%
30
40
50
60
70
80
90
2007 2008 2009 2010 9M2011
Billions
EBITDA EBITDA %
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Pakistan
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Macro-Environment
RegulatoryEnvironment
GDP growth rate in 2010 stood at 4.8%
35% of the population is under 15 years of age
Power Shortages are widespread, but are countered by innovative technological solutions
Slowing devaluation of the Pakistani Rupee against the US Dollar
Heavy floods had a large impact on the countrys population and infrastructure
The regulator, PTA, introduced MNP several years ago, which is currently a high focus for alloperators in the Pakistani market
PTA introduced new measures concerning customer data verification, which is to beadopted by all mobile operators, ensuring subscriber information accuracy
PTA is planning to launch an auction for three 3G licenses in 2012
Mobilink is the market leader in a five-player market.
Telenor: 2nd player in the market, value-driven operator, strong market share position
Ufone: 3rd player in the market, positive mass market perception
Warid: Have been mostly inactive for the past 2 years, however their level of activity hasbeen increasing lately
Zong: China Mobiles 1st venture outside China, last entrant into Pakistani market, offerscheap products and services, aggressive on pricing and market share gains
CompetitiveLandscape
Mobilink in partnership with the UNs Emergency Response Unit, committed about Rs. 81million for setting up a camp for Internally Displaced families who were affected by theflood.
Mobilink in partnership with UNESCO and Bunyad (a local NGO) has also implemented a pilotproject to test the use of mobile phones in facilitating literacy in Pakistan.
Mobilink also has its own billboard skins recycling program, which uses outdated billboardskins to manufacture school bags for underprivileged
Corporate SocialResponsibility
30.7%
18.9%10.0%
24.5%
16.0%
Market Shares *
Mobilink
Ufone
Zong
Telenor
Warid
Population: 187 M GDP/capita: $2,500
Market Size: 109 M subs Penetration: 58%
Market Players:
Telenor Ufone Warid Zong
Mobilink Overview
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Leverage the large subscriber base in orderto unlock revenue potential from non-voiceservices
Enhance margin through capturing mobiledata opportunities with internet penetrationestimated at 11% in 2009
Increase EBITDA through network OPEXreduction initiatives
Revamp Mobilinks positioning in themarket as well as its brand structure withthe objective of creating a differentiatedvalue position in consumers minds
Adopt innovative technology solutions inorder to enable a more efficient use ofresources through IN traffic offloading,
power saving and site environmentalmonitoring systems
Infrastructure sharing
Joint 3G roll-out
Network modernization
Strategic Direction
30.6
28.5
30.8
31.8
33.4
FY07 FY08 FY09 FY10 FY11 *
Subscribers (Millions)
76.9
87.886.9
94.3
72.9
FY07 FY08 FY09 FY10 FY11 *
Revenues (Billions)
Note: foreign exchange rate PKR 85.8751/ USD 1*CAPEX figures excl. GSM licenses and may differ from previously released figures
9M2011
Mobilink KPIs in PKR
9M2011
33.835.3
31.7
37.3
29.644%40% 36%
40%41%
0%
10%
20%
30%
40%
50%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
FY07 FY08 FY09 FY10 9M2011
EBITDA (Billions) & EBITDA %
12
32.4
37.7
12.8 12.2 13.0
FY07 FY08 FY09 FY10 9M2011
CAPEX (Billions)*
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Bangladesh
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Macro-Environment
Regulatory
Environment
Has the worlds highest population density
57% of population below 25 years of age GDP growth rate was estimated at 6% in 2010
Government Type: Unitary state and parliamentary democracy
Low Mobile penetration: less than 50%
Prior to Telecom Act 2010 the Bangladesh Telecommunication Regulatory Commission(BTRC) was the sole telecom market legislator
Receipt of 2G license renewal guidelines, validity of license renewal is for 15 years
BTRC levies a SIM tax that has been reduced to BDT600 or USD8.5 from BDT800 in 2011 3G license awarding likely to happen in 2012
Banks are engaging in the already existing mobile financial services
banglalink places 2nd in a 6-player market.
Grameenphone: 1st player, aggressive tariff moves targeting more acquisitions, largestnetwork
Robi: Rebranded from AkTel, started offering data services (GPRS), consistently subsidizeSIM tax, aggressive on the VAS communication
Airtel: Baharti Airtel acquired 70% stake in 2010, re-launched with new logo andcorporate brand repositioning
CityCell: CDMA operator, offers data services with handset subsidies
TeleTalk: Operated by national fixed incumbent BTCL, offers the lowest flat tariff in themarket
CompetitiveLandscape
banglalink has taken a number of initiatives such as:
Coxs Bazaar Beach Cleaning Project and International Coastal Cleanup Day
Setting up computer labs in 270 underprivileged schools at different parts of the countryunder the umbrella of Digital Bangladesh
Corporate SocialResponsibility
Population: 159 mln. GDP/capita: $1,700
Market Size: 81 M subs
Penetration: 53%
Market Players: Grameenphone Airtel
Robi CityCell TeleTalk
44%
27%
19%
7%
2%2%
Market Share*
GP
Banglalink
Robi
Airtel
Citycell
Teletalk
banglalink Overview
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24.0
28.6
8.7
16.4
6.7
FY07 FY08 FY09 FY10 9M2011
Tap into mobile data opportunitieswith internet penetration ratesextremely low in the country
Leverage large base by unlockingmass-market value potential
Explore opportunities for revenuegeneration through internationalcall center outsourcing services
Apply a dual market strategyproviding tailored services forhigh-end segments, as well asoptimized services for lower-endsegments in the market
Capture technology synergies byintroducing and swapping intooutdoor sites and implementinginnovative hybrid solutions
Site sharing
Strategic Direction
7
10
14
19
22
FY07 FY08 FY09 FY10 9M2011
Revenues (Billions)
EBITDA (Billions) and EBITDA % CAPEX* (Billions)
Subscribers (Millions)
13
20
24
32
28
FY07 FY08 FY09 FY10 Y11*
(3)
0
79
10
-26%
1%
30%28%
37%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
(6)
(4)
(2)
-
2
4
6
8
10
12
FY07 FY08 FY09 FY10 Y11*
Note: foreign exchange rate BDT 73.1028/ USD 1*CAPEX figures excl. GSM licenses and may differ from previously released figures
9M2011
9M2011
banglalink KPIs in BDT
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North Korea
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Macro-Environment
Regulatory
Environment
22.4% of population below 15 years of age
Over 60% of the population live in urban areas
Government and political situation is stable
Very low mobile penetration
Fixed line services are provided exclusively by the Korean Post and Telecom Corporation(KPTC)
KPTC is the sole internet provider and service is limited to foreigners Government-owned 2G mobile operator launched in 2002 was shut down in Q4 2010
koryolink was issued a nation-wide WDCMA, license in January 2008 with a 25 yearvalidity period and a 4 year exclusivity period
koryolink covers over 91% of the population
Exclusive sponsor for the Taewon-do championship hosted in the DPRK in September 2011Corporate Social
Responsibility
Population: 24.5 mln. GDP/capita: $1,800
Market Size: 809 K subs Penetration: 3%
Market Players:koryolink is the soleoperator in the DPRK
koryolink Overview
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1,69491,704
431,919
809,000
FY08 FY09 FY10 9M11
Subscribers
25,952
66,402
102,704
FY09 FY10 9M11
Revenues (000)
17,153
57,764
84,836
66%
87% 83%
0%
20%
40%
60%
80%
100%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
FY09 FY10 9M2011
27
47
17
FY09 FY10 3Q11
CAPEX (millions)EBITDA (000) and EBITDA %
koryolink KPIs in USD
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Telecel Globe
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Macro-Environment
RegulatoryEnvironment
Sub-Saharan Africas economic performance is improving
With 52% mobile penetration, Africa provides the highest subscriber growth potential
More bandwidth is being created at cheaper costs, and consumer demand for internetwill increase
Under-developed regulatory regimes for the telecommunications sector across Telecel Globe.
Telecel Zimbabwe: operates GSM 900/1800. New SIM registration processes have beenrequired. Both 2G and 3G are available.
Telecel CAR: operates GSM 900/1800. Regulator presently reports to the Ministry of Post& Telecommunications.
Leo Burundi: operates GSM 900/1800. CDMA 800 and WIMAX.
Telecel Zimbabwe: 2nd position in a 3 player market offering the best value proposition inthe market, offers 3G services, leader in broadband data with best data network in thecapital
Telecel CAR: 1st position with a 51% market share in a 4 player market with a strongbrand equity. The first to reach critical mass and long-term financial sustainability. Leaderin broadband data.
Leo Burundi: 1st player with a 57.3% market share in a 5 player market, capturing most
of the high value subscribers and corporate segment with a network covering 55% ofpopulation . Undisputed market dominance, driving mobile penetration in rural areas andmaintaining strong leadership in the capital.
CompetitiveLandscape
The activities our Sub-Saharan Africa companies engage in are tailored to the needs of ouroperating countries:
Supporting the development of micro enterprises in rural areas
Supporting education of women
Corporate SocialResponsibility
Zimbabwe Population: 12.1 mln. GDP/capita: $400 Penetration: 58% Market Position:2/3
Burundi Population: 10.2 mln. GDP/capita: $300 Penetration: 23% Market Position: 1/5
Central Africa Republic Population: 4.9 mln. GDP/capita: $700 Penetration: 18% Market Position:1/4
Telecel Globe Overview
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Derive profitability by reachingthe critical mass in theunderlying markets with verylow penetration rates whilecapitalizing on our marketleadership
Maintain value-driven pricing
Increase consumer awarenessand brand loyalty throughbrand facelifts in CAR andZimbabwe
Increase coverage footprintthrough cautious investment in
rural areas by deploying lowCAPEX sites suitable for ruralenvironments
Introduce low-cost outdoorsites in order to manage CAPEXdemands
Employ hybrid solutions
5921,526 1,247
660
1,0071,132
303
441 446
FY 09 FY 10 FY 11*
Subscribers (Thousands)
5885 71
44
5636
24
28
25
FY 09 FY 10 FY 11*
Revenues (Millions)
21 27 14
2027
13
3
6
2
35% 35%
22%
0%
10%
20%
30%
40%
0
20
40
60
80
FY 09 FY 10 FY 11*
EBITDA (Millions) andEBITDA %
2029
7
31 13
12
11 7
3
FY 09 FY 10 FY 11*
CAPEX* (Millions)
CAR
Burundi
Zimbabwe
9M2011
Negative subscriber base inZimbabwe due to mandatory
registration process
9M2011
9M20119M2011
Telecel Globe KPIs in USD
Strategic Direction
21*CAPEX figures excl. GSM licenses and may differ from previously released figures
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Egypt
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Macro-Environment
Regulatory
Environment
32.7% of population below 15 years of age
GDP growth in 2010 was 5.1%
Service sector makes up nearly 50% of GDP
Internet penetration is at 25% (est 2009), largest number of internet users in the region
National Telecommunication Regulatory Authority (NTRA) is the regulatory body
One of the most developed systems in North Africa and Middle East region
The first mobile telecom license was granted to Mobinil in 1998 to operate a GSMnetwork
3G was launched in 2007 by Vodafone Egypt
Mobinil: 1st entrant into the market, awarded GSM license in 1998, signed 3G license inOctober 2007
Vodafone: First player in the market to introduce 3G services in the country, focus oncorporate accounts
Etisalat: acquired license for US$ 2.9 billion in 2006, last to enter the market.Competitive pricing strategy.
In 2010, the Egyptian telecommunications market was marked by aggressive competition,mainly induced by pricing pressures. Competition in 2011 has rationalized.
CompetitiveLandscape
Corporate SocialResponsibility
Population: 82mln. GDP/capita: $6,200
Market Size: 76 M subs Penetration: 93%
Market Players: Mobinil
Vodafone Etisalat
MobiNil Overview
Blood donation and flu vaccination campaigns
Mobinil and UNICEF collaborated to provide 2,000 households in Upper Egypt with safewater and/or sanitary facilities to help reduce child mortality rate
Mobinil and Habitat for Humanity Egypt joined hands to construct/repair the houses for150 ultra-poor families living in villages in the governorate of El Menia and Beni Sweif
Established Mobinil Academy addressing education-related needs in society
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Canada
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Macro-Environment
Regulatory
Environment
3.1% GDP growth rate for 2010 16% of population below 15 years of age
Fairly low mobile penetration for a developed country
Internet penetration at 80% (est 2009)
81% of the population lives in urban areas
Canadian Radio-television and Telecommunications Commission regulates and supervisesbroadcasting and telecommunications, but not the internet
CRTC reports to Parliament and was established in 1968, providing a highly evolvedtelecom regime
Foreign ownership rules delayed the launch of WIND Mobile Canada, though after aprotracted legal battle the Parliament varied the CRTC decision and cleared the operatorfor launch in December 2009
The Canadian telecommunications market was characterized as an oligopoly
Rogers, Bell and Telus: incumbents dominated the Canadian market with similar tariffplans, leaving prices high and relative uncompetitive
WIND Mobile: operating in 5 of the top 6 population centers in Canada (no spectrum inQuebec), nearly 300 thousand subscribers at 3Q 2011
WestNet Wireless: Wi-Fi, CDMA and 3G network, operates in Calgary, Alberta
Mobilicity:launched in May 2010, operating in Toronto, Victoria, Calgary, Edmonton,Ottowa and Vancouver
Public Mobile: launched in 2010, operating CDMA network in Greater Toronto andGreater Montreal Areas, targeting low-income value conscious customers
CompetitiveLandscape
Population: 34 mln. GDP/capita: $39,400
Market Size: 25 M subs Penetration: 70%
Market Players: Rogers Telus Bell WIND Mobile Westnet Wireless Mobilicity Public Mobile
WIND Mobile Overview
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Thank You
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This presentation contains forward-looking statements about OTH. Such statements are not historical facts andinclude expressions about managements confidence and strategies and managements expectations about new andexisting programs, technology and market conditions. Although OTH believes its expectations are based on reasonableassumptions, 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. Theforward-looking statements in this presentation are only valid until the date of this document and OTH does notundertake 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 anyoffer or sale of securities in any jurisdiction in which such offer or sale would be unlawful prior to registration orqualification under the securities laws of such jurisdiction.
Disclaimer
