Financial Results 2019 DISCLAIMER This presentation contains - PowerPoint PPT Presentation

Financial Results 2019

DISCLAIMER This presentation contains information which may be deemed as forecasted information. Though the Company considers the statements and information rely on reasonable assumptions on the publication date of the present release, they are by nature subject to risks and uncertainties, which may give rise to a difference between the actual figures and those reported or induced in these statements or information. Sonatel cannot guarantee, or be held liable for the accuracy, thoroughness, coherence and effectiveness of any of the statements or information presented in this release. 1 Sonatel 2019 Financial Results

1 Highlights Sonatel 2019 Financial Results 2

Key Messages Sustained growth in total revenues despite Strong growth in revenues thanks to the development of the decrease in revenues from fixed voice mobile data, the use of Orange and international voice. Money services and Broadband Transformation of almost 30% of the Positive growth on gross (flybox, fiber, adsl) Improvement of the level of increase in revenues in growth of Ebitda adds allowing market free cash flow thanks to the margin thanks to the improvement of the share gains despite a more increase of operating margin direct margin. Revenues intense competition. higher than the increase in the Profitability volume of investments Competition Capex and Free cash flow The price/earnings ratio is the ratio of a company's share price to the company's earnings per share. Country Milliards FCFA Insecurity continues in the Economy northern and central part of Mali with impacts on the 3G / Macroeconomic indicators are Regulations 4G swap program and on the green in almost all countries of Introduction of New taxes and quality of service. presence new fiscal impacts. Lower interconnection rates. 3 Sonatel 2019 Financial Results

Key operationnal figures Customer base growth restarted following the sales boost of Simcards mainly in Mali, combined with the strong level of recruitments in all the countries 6.9 229.9 32.7 11.3 32.3 Millions Thousands Millions Millions Millions +23.2% +11.6% +22.4% +10.8% +10.4% Mobile 2019 FMI subscribers Orange Money Internet subscribers Data subscribers subscribers Fixed line+ Mobile + ADSL+ Fiber + Flybox +Wimax subscribers Mobile data 2018 Internet Voice, sms and VAS % 29.6 29.2 101 5.6 187.8 Millions Millions Millions Millions Thousands 4 Sonatel 2019 Financial Results

Key financial results Strong revenues growth, mostly thanks to growth drivers. Ebitda growth below revenues growth, due to increase of taxation. Improvement of the free cash flow thanks to the increase of operating margin, higher than the increase of the volume of investments. 274.7 207.3 196.8 1,086.8 482.1 Billion XOF Billion XOF Billion XOF Billion XOF Billion XOF +2.4% +6.7% -2.7% +6.3% +4.2% % 2019 Free Cash Flow CAPEX Net income Ebitda Revenues 2018 Milliards FCFA 268.3 194.2 202.3 1,022 462.6 % Billion XOF Billion XOF Billion XOF Billion XOF Billion XOF Sonatel 2019 Financial Results 5

Coverage SIERRA SENEGAL MALI GUINEA BISSAU LEONE Mobile Mob e pe penetration 109% 99% 108% 84% 54% 2G Pop 2G opul ulat ation on cov coverag erage (% (%) 98.2% 95% 98.1% 90% 81% 3G Pop 3G opul ulat ation on cov coverag erage (% (%) 95.2% 71% 67.3% 69% 60% 4G 4G Pop opul ulat ation on cov coverag erage (% (%) 73.1% 41% 34.4% 34% 41% 3G Act 3G ctive e su subsc scribers (i (in n Mi Million) on) 3.9 4.1 1.3 0.2 0.4 4G Act 4G ctive e su subsc scribers (i (in n Mi Miliion on) 1.6 0.5 0.3 0.06 0.03 Data pe Da penetration 41.7% 35.4% 34.2% 22.4% 13.8% 4G 4G pe penetration 16.7% 4.4% 3% 7.7% 1% Mobile Mob e Money Money pe penetration 39.8% 39% 35.3% 23.8% N/A 6 Sonatel 2019 Financial Results

Quarter One Highlights Contribution to the economies of our countries of presence Contribution to national revenues +610 Bi Billion XO XOF Paid out as duties, taxes, royalties, Contribution to the social contributions, custom duties and private sector dividends in the countries of presence +250 Billion XOF of revenues generated to the profit of local businesses in the countries Exports of presence +115 Bi Billion XOF of contribution to the balance of payments from foreign telecom Job creation operators +160 000 indirects jobs +4500 directs jobs Thanks to a wide commercial distribution network and dynamic partners 7 Sonatel 2019 Financial Results

Some of 2019 main campaigns 8 Sonatel 2019 Financial Results

Corporate social responsability Croissance & Bien-être Préservation de Bonne développement communautaire l’environnement Gouvernance économique Gouvernance �������������� ��������� ������������ ������ ����������� ������������� ������������� ������������� ���������� ���������� ��������� ����� ������������� ���������� Sonatel 2019 Financial Results 9

Corporate social responsability Sonatel foundation opened its second Fourth edition of the Linguere Digital Sonatel launched the first edition of Digital House in Dakar’s suburbs districts Challenge for Women entrepreneurs the Handicap Entrepreneurship fair First class of Sonatel Academy Keeping girls in school, a major Sonatel introduced women coding school graduated commitment of the Sonatel parliamentarians to the digital Group Sonatel 2019 Financial Results 10

Operational excellence awarded by global certifications Label Management System Certifications Professional Certifications Sonatel 2019 Financial Results 11

2 Operational results 12 Sonatel 2019 Financial Results

Customer base: fixed line, mobile and data Growth on recruitments on Mobile and data, evolution of fixed line impacted in Senegal by the discontinuation of CDMA services Fixed line Mobile 32 301 044 2019 +10.8% 2019 206 173 -31.7% 29 146 650 -2% 2018 302 243 2018 +5.9% 2017 29 736 083 2017 285 294 Data 2019 229 850 +22.4% 187 786 2018 +14.8% 2017 163 513 Sonatel 2019 Financial Results 13

Mobile subscribers base Proven commercial strategy focused on abundance, resulting in strong subscribers base growth +9.6% 9 575 174 8 734 542 Senegal 8 344 083 +13.4% 11 871 846 10 468 834 Mali 12 539 918 +5.5% 7 670 324 7 268 259 Guinea 6 783 073 709 819 +4% 682 701 Bissau 646 573 +24.2% 2 473 881 Sierra 1 992 314 Leone 1 422 436 2017 2019 2018 Sonatel 2019 Financial Results 14

ARPU Increase of ARPU in all countries thanks to improved offers and a good customer experience Mali Guinea Senegal Bissau Sierra Leone Mobile prepaid Mobile prepaid Mobile prepaid Fixed line Mobile prepaid Mobile prepaid (SLL) (XOF) (GNF) XOF (XOF) (XOF) 2 224 20 322 27 109 2 935 92 928 3 147 +26.3% +15.2% +2.5% +8.6% +8.5% +2.7% 1 930 2 701 18 729 26 452 73 579 3 063 +2% +37.4% +2.5% +3.6% +4% +12.6% 1 618 19 542 26 448 2 832 94 838 2 794 2017 2019 2018 Sonatel 2019 Financial Results 15

Mobile Data Strong growth of revenues thanks to a better penetration of the 4G. Growth in subscribers base and usage driven by recruitments % group Contribution to Revenues Mobile Data ARPU revenues revenue growth 1878.8 238.9 22% 73% XOF Billion XOF +3.2 points -41.2 points +9.4% +24.7% 1.2 2.43 11.3 million million million +22.7% +153.3% +11.6% Active Delta subscribers Active 4G subscribers base subscribers Sonatel 2019 Financial Results 16

Orange Money Continued business growth, rising revenues and improved profitability. A contribution to the growth in revenues of 32%. Orange Money % group Contribution to Revenues ARPU Revenues revenue growth 1 116.6 83 7.7% 31.9% XOF Billion XOF +1.5 points -2 points +9.6% +33% 6.9 1 069.1 48.6% 57.9% million million +5.8 points +10.7 points +23.2% +35,2% Active active /registred full compliance Volume of subscribers rate rate transactions 17 Sonatel 2019 Financial Results

3 Financial results Sonatel 2019 Financial Results 18

Financial results Good financial results thanks to strong revenue growth and control of direct costs, especially interconnection costs. Change in net margin due to the level of amortization and the debt costs Operational Net income Free Cash Flow Revenues Ebitda results Billion XOF Billion XOF Billion XOF Billion XOF Billion XOF % 462.6 482.1 312.3 196.8 316,7 202.3 1022 268.3 1086.8 274.7 +6.3% +1.4% +2.4% -2.7% +4.2% Direct margin Ebitda margin Net margin CAPEX rate Operating Margin % 29,1% 45.3% 30.6% 88.1% 88,8% 44,4% 19.8% 18,1% 19% 19.1% 2018 2019 Sonatel 2019 Financial Results 19