Weather Investments

1
Weather Investments
2
Unique Combination of Growth and Attractive
Fundamentals
Population 58 million GDP/Capita ()
30,200 Subscribers 15.6 million Market
position 3 of 4 Penetration 144
Population 10.7 million GDP/Capita ()
24,000 Subscribers 4.5 million Market position
3 of 3 Penetration 137
Population 166.7 million GDP/Capita ()
2,600 Subscribers 30.6 million Market position
1 of 6 Penetration 34
Population 33.3 million GDP/Capita ()
7,600 Subscribers 13.3 million Market position
1 of 3 Penetration 51
Population 80.3 million GDP/Capita ()
4,200 Subscribers 15.1 million Market position
1 of 2 Penetration 25
Population 10.3 million GDP/Capita ()
8,800 Subscribers 3.6 million Market position
2 of 2 Penetration 65
Population 150.4 million GDP/Capita ()
2,300 Subscribers 7 million Market position 3
of 6 Penetration 15
Sources CIA Factbook, Economist, (data as of Q1
2007) Note (1) Figures are calculated on the
basis of GDP at Purchasing power parity (PPP) per
Capita. (2) Penetration and population figures
are in reference to mobile business (3)
Subscribers Figures are estimates of 2007 year end
3
(No Transcript)
4
Unparalleled Growth Profile
Apr 2007 100 acquisition of Wind Hellas
2005 Acquisition of Wind by Weather Investment
Nov 2006 Acquisition of minorities in OTA
Jan, May Nov 2005 Buy out of Minorities in OTA
OTT
Apr Feb 2004 Completion of the divesture of
Telcel Loteny and sale of controlling stake
Oct 2002 Wind acquisition of part of BLUs assets
2007
2001 Wind merger with Infostrada
Dec 2000 License in Syria
Mar Nov 1999 Wind Mobile/free Internet service
launched
2006
Apr 2003 Divesture of Telecel subsidiaries.
June 2007 Acquisition of minorities in PMCL
2005
March Oct 2002 Acquisition of greenfield
license in Tunisia JV with Wataniya
Jan 2001 Acquisition of Motorola shares in ECMS,
JMTS PMCL
1998 Launch of Wind fixed line service
Dec 2006 Acquisition of Enels 26 stake in Wind
Apr 2000 Purchase of 80 stake in Telecel
38.6 stake in PMCL (Pakistan)
2004
Jul 2005 Buying out All Minorities in OTI
October 2007 Acquisition of Tellas minorities
stakes
Sep 1999 Acquisition of controlling stake in JMTS
(Jordan)
2003
2002
Sep 2004 OTH purchased 100 of Sheba Telecom in
Bangladesh
Dec 2005 Acquisition of 19.3 Interest in HTIL
Jul 2003 Disposal of Syriatel
2001
2000
1999
1998
Dec 2002 Sale of JMTS (Jordan)
Jul 2001 Acquisition of Greenfield license in
Algeria
Oct 2003 OTH awarded Greenfield license in Iraqs
Central Region
May 2005 Sale of 100 indirect equity stake in
Oasis in Congo and 65 in Libertis Telecom
Jul 2000 Primary listing on CASE and GDR program
in LSE
Mar 1998 Launch of ECMS (Egypt)
Oct 2004 Wind UMTS launched

• Total including combination of pro-forma Wind
  OTH for full year. Accounting consolidated
  revenues (5 months) 3,265 million
• Total including combination of Wind Hellas. LTM
  Q1 2007 growth on comparative basis with LTM Q1
  2006.
• EURO / USD exchange rate Average exchange rate
  for the full year and average LTM for Q2 2006
  Q1 2007

5
Weather

• Characteristics of Emerging Markets
• Developing markets
• Low GDP per capita
• Highly populated
• Mostly under-penetrated
• Low ARPU levels
• Intensive competition, due to numerous players in
  the market
• Price sensitive markets

• Characteristics of Mature Markets
• Developed more dynamic markets
• Mature saturated telecom market
• High penetration
• Healthy GDP per capita
• Sophisticated services
• Higher customer expectation
• Operators are fighting over the share of wallet
• Regulatory pressure
• Competition leading to more pressure on
  termination rates and accordingly ARPU levels

6
Key Highlights
Unique Value Growth Proposition

• Covering a population of 523 million in markets
  continuously delivering average real GDP growth
  of 5
• Blended average penetration in emerging markets
  portfolio of 28 and accelerating quickly
• Wind and Wind Hellas delivering double digit
  EBITDA growth in stagnant European markets
• Italy and Greeces broadband and IP TV markets
  still far below European penetration averages
• De-leveraging profile of Wind and Wind Hellas
  backed by robust and stable cash flow generation

Strong Market Positions

• Leading market positions in 3 out of 5 high
  growth markets
• Only alternative integrated operator in Italy
  with robust 3rd mobile and 2nd fixed and
  broadband positions
• Strong 3rd operator position in Greece, with
  potential to be become the only alternative
  integrated operator

Commercial

• Development of very strong localized brands
  deeply rooted in local cultures and traditions
  (Djezzy, Banglalink)
• Develop multi branding and segmentation (find
  products for customers, instead of customers for
  products)
• Increase customer base to benefit of large on-net
  communities to enhance revenue generation
• Capitalize on expertise developed in different
  markets to roll-out successful products across
  the portfolio
• Align commercial objectives with value creation
  through pricing committee review of all major new
  offers
• Committee composed of all operations chief
  commercial officers (peer review) to cross
  fertilize expertise

7
Emerging Markets Our Innovation Is Our Strategy
8
The Mobile Has a Great Potential to Deliver Value
to Customers and Operators

• In most of Weather markets there is still a lot
  of potential growth in subscribers and usage
• Yet, as a natural development, these markets will
  reach saturation at a certain point of time.
• Weather with its current customer base size can
  ensure sustainable value growth.

OUR CORE ASSET IS THE CUSTOMER BASE
Pure Voice
life-style
From
To

• Broadband is a growth opportunity in mature
  markets
• Elasticity exists, even in mature markets

9
Future of Telecom
More revenues will come from utilizing our
customer base in other areas than voice by
leveraging the mobile device as a life style
enabler
Value
Future development
Banking Media Convergence
M-Payment M-commerce Micro-payment Remittance
VOICE Usage Stimulation Off peak usage On-net
community
Advertising On-line Mobile Advertising
VAS Business Solutions Appealing
services Creative VAS Content
Broadband
Data Broadband Internet
Current
Mid-term
Future
10
Solidifying our Positioning

• Using a local brand flavor that is closer to
  peoples hearts.
• Maintaining our leadership positions in most of
  our markets.
• Responds to peoples needs and provides best
  value for money
• Dual strategy focusing on high and low end
  subscribers
• Utilizing our community effect through the
  on-net advantage.
• Actively participate in different areas of social
  arenas

Mobilink
11
Enhancing Customer Centric Approach through Main
Marketing drivers
Customer Centric Approach
Retention
Payment collection
Servicing
Billing
Usage Network
Sales Channels
Products Services
Branding
12
Customer Satisfaction is Also Key

• Use more and stay more
• Less sensitive to price
• Bring new customers
• Less load on CS

8000
Satisfied Customers are More Profitable

• Its costs much more to ac quire a new customer
  than to retain an existing one (marketing and
  sales costs)
• Researchers analysis found that acquiring new
  customers costs 3-5 times more 1

New acquisitions are more costly
Dissatisfied Customers Tell Others

• On average dissatisfied customers tell their
  stories to 14 others 1

Imtiyaz
Few customers complain of poor product performance

• Two thirds leave because they find service people
  indifferent or inaccessible

The Loyalty Effect The Hidden Force Behind
Growth, Profits and Lasting Value by F.F.
Richard and T.Teal (Harvard Business School Press)
13
Improving Quality

• Extending our network coverage.
• Enhancing network quality KPIs.
• Constantly improving customer care and own shops
  (handling requests, waiting duration and problem
  solving).
• Improve customer handling processes in customer
  Care, owned shops and channels (activation time
  processes)

14
Weather Investments

• Thank you