EBBC Introduction to Strategy Vodafone Egypt

1. EBBC Introduction to StrategyVodafone Egypt Ian Gray, Chairman, Vodafone Egypt 17 November 2007

2. If you do not know where you are going – you will never get there! EBBC – Introduction to Strategy – Vodafone Egypt

3. Have a plan! Failure to plan = Planning to fail ! EBBC – Introduction to Strategy – Vodafone Egypt

4. Key Drivers for Success • Market led • Customer focused • Competitor aware • Employee driven EBBC – Introduction to Strategy – Vodafone Egypt

5. Strategy issues ref Vodafone EgyptContents • Egypt • Vodafone Egypt • Strategy • Summary EBBC – Introduction to Strategy – Vodafone Egypt

6. Egypt – good macroeconomic environment Demographic facts Population 77.5m (1.8% p.a. growth) Literacy 58% of population Population distribution 50% aged 20 or less GDP per capita US$953 (US$4,400 adjusted for PPP)(1) GDP growth ~6% per annum(2) Economic facts Income distribution US$ per month • Economy steadily improving since July 2004 • Strong growth in tourism and Suez Canal revenues • Increasing FDI and significant acceleration of privatisation • Inflation rate at circa 10%; stable exchange rate + 397 5% A B 6% 238 - 397 B 159 - 238 17% C 84 - 159 28% D 44% < 84 E (1) 2005 estimates, (2) Estimate for 12 months to June 2006 Source: CIA World Fact book, 9th Euromoney Arab Financial Forum EBBC – Introduction to Strategy – Vodafone Egypt

7. Mobile continues to outgrow fixed Egyptian telecom market overview • Fast growing mobile market • 21% penetration; 27% YoY growth(1) • 99% population coverage (8% of land mass) • mostly prepaid; SIM only with no handset subsidies • low blended minute rates (<5€c) • few mobile HVCs generating high ARPUs Fixed vs. mobile revenue • Slow growing fixed market • 14% penetration; 6% YoY growth(1) • Only 2.5m PCs; 120,000 DSL connections • Regulator influenced by politics and must approve tariffs Source: Company data and analyst consensus estimates, (1) 3 months to September 2006 EBBC – Introduction to Strategy – Vodafone Egypt

8. Two player market with a recently launched 3rd entrant Vodafone Egypt Mobinil Etisalat • Vodafone controlled; with Telecom Egypt as strategic partner(1) • Launched November 1998 • Customers 7.8m(2,3) • Twelve months revenues LE6.8bn(3) • Joint Venture ORASCOM/ Orange • Launched May 1998 (with early lead of 100,000 HVCs) • Customers 8.1m(2,3) • Twelve months revenues LE6.0bn(3) • UAE controlled; with local partners • Launched April 2007 • Paid LE16.7bn (US$2.9bn) for 2G/3G licence (3.4% of Egypt GDP) Ownership 4% 20% National Bank of Egypt 20% CIB 4% Free Float 37% ORASCOM 31% Telecom Egypt 45% Vodafone Group 55% Etisalat 66% Egypt Post 10% Orange 32% (1) Vodafone Egypt remaining free float 0.44%, (2) Active customers, (3) September 2006 Source: Vodafone & Mobinil company data and Egyptian Government data EBBC – Introduction to Strategy – Vodafone Egypt

9. Promising outlook with rapid mobile market growth Drivers for hitting the “S” Curve • Macro-economic environment • economy improving since 2004 • Mass market appeal • mobile moving to mass market “necessity”; no longer a luxury product • Reduced entry and usage barriers • entry handset now around US$20 • prepaid tariff reductions • lower customer activation charges Total mobile market penetration Reportedcustomers (m) Mobilepenetration (%) Source: Company data EBBC – Introduction to Strategy – Vodafone Egypt

10. Contents • Egypt • Vodafone Egypt • Strategy • Summary EBBC – Introduction to Strategy – Vodafone Egypt

11. ‘Core Purpose’ To connect people and communities Accelerating the advancement of Egypt EBBC – Introduction to Strategy – Vodafone Egypt

12. Vodafone Egypt is growing rapidly Revenue EBITDA 38% CAGR 44% CAGR Revenue components H1 FY06/07(1) YoY% growth H1 FY06/07 (1) % of total revenue, (2) Active customers Source: Company data, Egyptian LE (IFRS) EBBC – Introduction to Strategy – Vodafone Egypt

13. Vodafone Egypt Mobinil Vodafone Egypt is outperforming Customer share (%)(1) Revenue share (%) EBITDA share (%)(2) EBITDA margins (%)(2) • Active customers, (2) Both operators were released from liability to pay 1800 spectrum fees in Sep 2006 – LE100m impact excl. from Mobinil EBITDA. LE92m impact incl. in Vodafone Egypt depreciation • Source: Company data Option 1Analyst and Investor Day – Vodafone Egypt

14. Prepaid Contract Growth in prepaid with reduction in minute rate Prepaid vs. contract closing customer split(1) Outbound minute rate evolution Contract • Low outbound minute rate: 30pt (<4€c) • Customer growth slowing indicating maturity Prepaid • Growth accelerating from late 2004 • Tariff options increased and price per minute reduced to encourage usage (1) Active customers, estimated prior to October 2003 Source: Company data EBBC – Introduction to Strategy – Vodafone Egypt

15. Prepaid Contract Monthly ARPU Monthly ARPU Monthly MOU Monthly MOU Driving usage through positive elasticity Prepaid vs. contract closing customer split(1) Outbound minute rate evolution Contract outbound MOU vs. total ARPU Prepaid outbound MOU vs. total ARPU (1) Active customers, estimated prior to October 2003 Source: Company data EBBC – Introduction to Strategy – Vodafone Egypt

16. Vodafone Egypt outperforms on customer satisfaction Vodafone Egypt vs. Mobinil Network availability Voice quality Call continuity Sending/receiving SMS Vodafone Egypt Mobinil 11% Source: Network Satisfaction Tracker (Logic Consulting Group). October 2006 Option 1Analyst and Investor Day – Vodafone Egypt

17. 100 95 90 85 80 75 May 2005 Jul 2005 Sep 2005 Nov 2005 Jan 2006 Mar 2006 May 2006 Jul 2006 Sep 2006 Cost management is critical in low ARPU environment Cost principles • Break even or better on activations • No unprofitable tariffs • Utilise and build on Group buying power • Front line accountability • Marginal cash cost per marginal customer • Every piaster matters Margin breakdown H1 FY06/07 (%) Total revenue Inter-connect costs Other direct costs Acquisition & retention costs Operating expenses EBITDA Network utilisation (%) Source: Company data EBBC – Introduction to Strategy – Vodafone Egypt

18. Brand Buying power Market intelligence (product innovation, technical support, market trends) Resource People development Australian call centre Professional IT services International help desk Being part of Vodafone Group offers many benefits Benefits from Vodafone Group … … and in return from Vodafone Egypt EBBC – Introduction to Strategy – Vodafone Egypt

19. (%) 100 (7) 100 (18) 90 80 (20) 70 (22) 60 50 40 33 (11) 30 22 20 10 0 Revenue(1) Government Direct costs Operating Capex Corporate Free cash charges(2) expenses tax flow free cash Vodafone Egypt generates healthy cash flows Free cash flow FY05/06 Operating flow (1) Revenue excluding sales tax, (2) Various charges including national training fund, telecom fund, NTRA fees (excl. 2G licence fees) Source: Company data Option 1Analyst and Investor Day – Vodafone Egypt

20. Contents • Egypt • Vodafone Egypt • Strategy • Summary Option 1Analyst and Investor Day – Vodafone Egypt

21. Unrelenting focus and attention on six key areas 1 Consistency 2 Image and quality 3 Small price premium 4 Managing market competitiveness 5 Values based culture 6 Best team EBBC – Introduction to Strategy – Vodafone Egypt

22. Company Vision Strategy & ValuesProfitable Growth Based on Value and Differentiation • Grow market at appropriate cost • Focus on value • Grow adjacent market • Network quality and coverage • First to market with key products • Excellence in customer service • Relevant brand for the people of Egypt • Synergies from the Group • Cost conscious culture • No compromise on quality • Experienced management team • Hiring the best • Emphasis on training Profitable Growth Brand Preference Cost Containment & Synergies Management Capabilities EBBC – Introduction to Strategy – Vodafone Egypt

23. Market LeadershipOur Objective is Building a Strong Vodafone Brand • To delight our customers and build our market leadership without having to compete on pricing. • Our brand is a global one yet with a local tone that keeps it close to our customers hearts. • We have the best marketing talents from the local market and industry knowledge through our links into the Vodafone Group. • Our tools to build that strong brand is to excel and communicate in the following areas: • Superior Coverage • Better Sound Quality • Excellent Customer Care • Leadership in Customer Relevant Product Innovation EBBC – Introduction to Strategy – Vodafone Egypt

24. From Strategy to Operational Plans Tasks Processes Resourcing Behaviour • Market led • Customer focused • Competitor aware • Employee driven EBBC – Introduction to Strategy – Vodafone Egypt

25. Thank You