Yemen

Raed AhmadCEO

2

Country overview

Yemen

Market Share 41%Penetration 15%Market sizing 6.4m (2011)Population 21.5m

IslamReligion

Interest rates: Borrowing 19% - Deposits 14.5%Local Rates

Arabic, EnglishLanguage

$600GDP/Capita

Demographics

USD$1 = 199.17YRCurrency

20%Inflation

Economics

3

Market Players

Government ownedSaudi / Kuwaiti /

Syrian / Local investors

Government and public shares

All-Ahmar Group, Batelco, Hayel

Saeed Group, IfanForeign Investment

Company, CCC

MTN 83%Shareholders

Geographical – 73%Population – 88%

Alcatel

1,301K (Sep 07)

July 2000

MTN

All governorates

Alcatel

1.1m (Oct 07)

1982Fixed line licence

Public Tele-communication

Corporation

N/A

Ericsson

N/A

December 2007 (expected)

Hits Unitel “Y”

Geographical – 65%Population – 80%

Geographical – 71%Population – 85% Coverage

HuaweiSiemensMotorolaSuppliers

868K (Oct 07)1.2m (Oct 07)Subscribers

November 2004February 2001(15yr GSM licence)Launch date

Yemen MobileSabafon

4

Licence

Period

Fees

Spectrum

• 15 years July 2000

• Initial fee US$10m• Annual fee US$1.2m

• 900MHz• E-900MHz

5

Operational structure

CEORaed Ahmad

TechnicalJihad Kaj

Customer RelationsWassimDabbous

SalesHoussam

Saad

FinanceSiraj Muneer

MarketingWalid Akkaoui

Human ResourcesMohammed

Nasher

Deputy CEOAli Abdelwareth Business Risk Management

Abdulla Madari

Information Systems

Hisham Fathi

6

Highlights

Subscribers/ARPU • Stable performance in challenging environment

• Maintained market share at 42%

• Strong competition

• Launch of 4th operator “Y”expected soon

• Tax holiday ends in February 2008

• Seeking extension of additional 2 years

• Ongoing optimisation of network

208m279mEBITDA

11%Capex/ Revenue

377m526mRevenue

Jun 2006Jun 2007*ZAR

0

200

400

600

800

1000

1200

1400

1600

2003 2004 2005 2006 2007$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Subscribers ('000) ARPU

*Increased stake from 43% to 83% in April 2006

7

Infrastructure

88%% Population covered

665Total number of BTS’s

641Total number of sites

24Total number of BSC’s

4Total number of MSC’s / MSC-S’s

Aug2007

Technologybenchmarks

73%% land

8

Distribution

Market Channel Distribution

(Exclusive)8 Distributors

1 FMCG Distributor1 EVD Distributor

Super Dealers50

Dealers6000

Grocery SuperMarket 1800

Post Office240 Branches

8

9

Products

Customer Value

Proposition

RoamingPostpaid,PrepaidGPRS

SegmentationsProfessionals,

youths, women, corporate (CUG)

BOPLow dominations, scratch, handset

bundled

DistributionVTU, EVD

VASRBT, Premium SMS/IVR, MMS,

GPRS, Fleet management

RetentionDormant, score

cards, save team, high value

1010

Products

11

Looking forward

• Untapped market (rural areas / bottom of pyramid)

• Superior coverage and network quality

• Customer service

• MTN Brand

• High inflation with low GDP

• Strong competition

• Regulatory

• Challenging terrain

• Scarcity of skilled resources

ChallengesOpportunities

1212