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annual investors conference

London, march 14 14-15 15 th

summary

1. general overview
2. economic environment and market overview 3. operational and financial figures
4. prospects 5. appendix

1general overview

1993
(Telecom Plus) Sonatel Multimedia 100%

1999
Sonatel Mobiles 100%

2004
Sonatel Business Solutions 100%

February 2003
Orange Mali 70%
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May 2007
Orange Bissau 90%

November 2007
Orange Guinea 90%

1.key considerations
an integrated, innovative operator, leading player in west African subregion

operating in 4 countries with a population of 36 million inhabitants running fixed, mobile, Internet, TV and mobile payment activities serving 11.2 million subscribers at the end of December 2010 strong g mobile subscriber g growth of 27.4% in 2010 confirmed leadership in all its historical markets one of the highest profitability: Ebitda margin of 54% and net margin of 31% 42% owned by France Telecom (one of the largest worldwide operators) and backed up by the Senegalese government listed on the Brvm in Cte dIvoire since 1998 and first value at Brvm stock exchange 70% pay-out ratio and a dividend yield of 10% for 2010 a low debt level 1st investor and biggest tax payer in Senegal and more than Fcfa.500 billion of Capex (over the past 5 years) in our markets (Senegal, Mali, Bissau and Guinea)

strong t growth th prospects t

growth prospects thanks to new operations in Guinea and Guinea Bissau and other regional players that could be added to Sonatels footprint

1.highlights the group continues to lead innovation in the subregion


Pass Internet Everywhere Facebook version 0

payment via the mobile phone may june

access to Facebook and Gmail via mobile phone july august september

prepaid Internet october

2010

Adsl - prepaid

fixed lines and prepaid Internet

Iphone and 3G solutions

promotions on BTS area

1.development of data mobile and broadband offers


Internet broadband development (Wimax, Internet, prepaid, pack Internet: key + livebox) top-of-the-range fixed and mobile (Iphone 4, Blackberry, Terminal plus) handsets

Senegal: 3G in experimentation since 2008, full license since march 2011 and since july 2010 in Mali

1.commercial dynamism

promo flash: granted bonus

religious events

Internet day

pack multimedia

new offers

sales promotion: new concepts


distribution: ganal, kirne mobile offers: bonus zone, multiplay sales: l 100% b bonus, t tombola, b l sales l games, events t associated i t d games sponsoring: wrestling matches associated to religious and cultural events

tombola

2 economic environment and


market overview

2.highlights
increased competition around abundance greater dynamism of the market with a penetration rate of 69% and a stronger g g growth 5 million Orange subscribers in spite of a market share decrease to 61% unfavourable tax and regulatory measures institution in june then suspension in november 2010 of the surtax on the entering international communications and the contract with Global Voice attribution of a license of infrastructure cables management in august 2010 increase in the Rutel tax from 2% to 5% in september 2010 celebrating 25 years of Sonatel in november 2010

Senegal

Mali

maintaining leadership despite new competition maintaining 2 digit growth on turnover improving the debt collection with competitors decline in domestic interconnection rates by 39% improvement of debt collection with the competitor

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2.highlights

Guinea

normalization of the political climate return to the constitutional order with the election of a new President of the Republic macroeconomic environment remains difficult first recorded profits improved market share (+4 points) 900 000 subscribers despite increasing competitive pressure attribution of a 6th license

Bissau

consolidation of commercial dynamics driven in 2009 generally stable political environment macroeconomic environment remains difficult improved operational performance

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2.improved penetration rates and maintaining strong positions in all markets despite increased competitive pressure
Senegal
GDP 4% inflation 0.9% penetration 69% position 1st/3 market share 60%

Mali
GDP 5.1 % inflation 2.1% penetration 52% position 1st/2 market share 69%

present in 18 countries in Africa

Bissau

GDP 3.5% inflation 1.5% penetration 41% position 2nd/3 market share 31%

GDP 3% inflation 15.4% Guinea penetration 36% position 2nd/6 market share 28%

activities

fixed line mobile internet TV adsl orange money

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2.regulation
west african regulatory framework harmonization done in 5 countries: Burkina Faso, Sierra Leone, Gambie, Cap Vert, Ghana and in progress in the other Ecowas members states new taxes on international incoming traffic in Senegal suspended in november 2010 roadmap of telecom sector policy under study g workshop p numeric dividend: national committee began new communication law adopted in Senegal in february 2011: - setting up of an independent authority of regulation, - separation of regulation and policy functions, - setting up of 2 decisional parties (collegiate management and general manager), - universal access contribution allowed for communication, communication energy and Tv, Tv - new regulatory issues: local loop unbundling, numbers portability, - license for infrastructure.

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2.wealth creation: major contributor to the economies of the countries


Sonatel group, a key driver of economic development in countries of presence:

contributes significantly to job creation: +100 000 jobs in the subregion (card vendors, call boxes managers) with 3 000 + direct jobs relative l ti part t in i th the country 10.4 10.4% % 13.8 13.8% % 9.7 9.7% % 4.0 4.0% % 7.8 7.8% % 10.7 10.7% %

value (Fcfa billion) contribution on country taxes revenues contribution on country budgetary revenues contribution on country exports contribution on country GDP contribution on private & general investments contribution on private investments
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127 175 95 251 64 64

model of the future headquarters of Sonatel

3 operational an financial figures

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3.market trends and specifications


Senegal Subsidiaries number n mber of operators position penetration rate market share (subscribers) market trend (vs 2009) Fixed 2 1 2% 98% growth Mobile 3 1 70% 60% growth Multimedia 5 1 95% growth Integration 5 1 NA growth Mali Orange Mali 2 1 52% 69% growth Guinea Bissau Guinea Gu ea

Orange Bissau Orange Guinea 3 2 41% 28% growth 6 2 36% 31% growth
- normalization of political and economic environment - depreciation of the GNF - strong competition

market specifications

- strong development of multisim and abundance offers on mobile - strong g competition - development of Internet broadband

- growth in fixed lines due to prepaid offers et development - new competitor (Maroc Tlcom) - market share of internet taken from leader

- normalization of the economic and social environment

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3.subscribers: 11.3 million including 2 million new customers in 2010


growth in subscribers on all segments: fixed lines, mobile and Internet development of broadband Internet via prepaid number of subscribers
2008 2009 2010 09/08 10/09

240 358
Fixed line

258 233

282 722

7.4%

9.5%

6 971 710
Mobile

8 884 735

10 905 583

27.4%

22.7%

Internet

52 836

64 052

91 854

21.2%

43.4%

7 264 904

9 207 020

11 280 159

26.7%

22.5%

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3.mobile subscribers: +23%


strong growth in Mali, Guinea and Bissau thanks to commercial animation and expansion i of f network k coverage

mobile subscribers
Senegal

2008

2009

2010

09/08

10/09

3 536 672

4 607 891

5 089 540

30.3%

10.5%

Mali

2 757 094

3 474 952

4 716 819

26.0%

35.7%

Guinea

617 896

684 211

907 038

10.7%

32.6%

Bissau

60 048

117 681

192 186

96.0%

63.3%

total

6 971 710

8 884 735

10 905 583

27.4% 22.7%

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3.arpu erosion linked to the progression of subscribers, development of the abundance and impact of regulatory measures
decline in arpu due to the development of abundance and decline in interconnection rates but slowing in Senegal improvement in arpu in Guinea result of the revaluation rates arpu* Senegal
USD

2008
174 14 117 10 162 5 61

2009
193 10 97 9 168 5 76

2010
179 9 83 7 170 6 106

09/08
10,4% -25.9% -17.5% -14.8% 3.3% 1.4% 24.6%

10/09
-7,0% -15.6% -14.4% -17.0% 1.0% 20.1% 39.8%

fixed lines mobile prepaid mobile postpaid mobile prepaid mobile postpaid mobile prepaid mobile postpaid

Mali
USD

Guinea
USD

Bissau
mobile prepaid
USD
*exchange rate at 31/12/2010 1 XOF = 12.16 GNF *exchange rate at 31/12/2010 1 USD = 493.0503 XOF/**arpu on a monthly basis in USD
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7.1%

-8.9%

3.maintaining the dynamics of growth with strong financial performance despite unfavourable tax and regulatory environment
2008 529 552 2009 562 626 2010 599 002 10/09 6.46%

millions XOF

revenue

Ebitda Ebitda margin operating profit operating p g margin g net profit g net margin Capex p rate Capex

299 063 56.5% 194 104 36.7% 156 825 29.6% 133 061 25.1%

316 108 56.2% 223 884 39.8% 185 028 32.9% 92 163 16.4%

324 242 54.1% 228 044 38.1% 184 760 30.8% 118 139 19.7%

2.57%

1.86%

-0.14%

28.18%

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3.consolidated revenues: +6.5%


growth driven by mobile activity, international balances and Internet decrease d i domestic in d i i interconnection i is i related l d to the h impact i of f rate reductions d i (34%) in Senegal and Mali
revenues by activity
400 350 300 250 200 150 100 50 0 mobile 11.2% 7.5% 6.3% 20 9% 20.9% 19.8% 19.7% 6.2% 6.4% 5% 4.8% 4.2% 5% 0.9% 0.7% 0.8% Internet, leased lines and data 61.8% 60.9% 57 8% 57.8%

revenues by activity

other

international balance

domestic interconnetion

fixed lines

-40% -30% -20% -10% 0% 2008 2009 2010

10% 20% 30% variation 09/08

variation 10/09

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3.maintaining a high level of margins


maintaining gag good level of margin g despite p the slight g decline margins in 2010 impacted by the effect of the surcharge on inbound international, unfavourable regulatory and tax measures and exceptionals*
2008 2009 2010

in % of revenue

Ebitda margin

56.5%

56.2%

54.1%

operating margin

36.7%

39.8%

38.1%

net margin

29 6% 29.6%

32 9% 32.9%

30 8% 30.8%

* exceptional acceleration provisions in 2009 (Ebitda impact) and accelerated depreciation of certain assets following the inventory of 2010 (operating margin impact)

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3.a level of sustained investment: 19.6% of sales


an increase i carried i db by th the project j t of f cables bl ACE and d th the extension t i of f th the mobile bil network t kt to i improve quality of service and the rural area coverage 2008
100 087 74.8% 18 177 13.6% 6 858 5 1% 5.1% 8 568 6 4% 6.4% 133 690 25.1%

millions XOF mobile networks % fixed lines/Internet network % information system % logistics buildings and others % total capex in percentage of revenue

2009
65 814 71.4% 15 799 17.1% 5 958 6 5% 6.5% 4 590 4 9% 4.9% 92 161 16.4%

2010
87 699 74.1% 20 081 17.1% 6 480 5 5% 5.5% 3 826 3 2% 3.2% 118 139 19.7%

10/09
32.25%

27.1%

8.76%

-16.65%

28.18%

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3.a positive contribution of all entities


still predominant contribution of Senegal improvement in the performance of both Guineas and strengthening of the weight of Mali

millions XOF

S Senegal l 64.6%

M li Mali 29.6%

G i Guinea 4.8%

Bi Bissau 1.0%

revenue Ebitda operating profit net profit cape capex growth in revenue* g

61.0%

35.1%

3.4%

0.6%

57.5%

39.7%

3.0%

-0.3%

49.7%

47.8%

2.9%

-0.4%

54 5% 54.5% 3.0%

35 5% 35.5% 9.4%

7 6% 7.6% 36.8%

2 3% 2.3% 57.0%

* contributive revenue

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3.good cash generation and debt level of 9%


Debt and Equity billions XOF
700 600 500 400 300 200 100 0 9.16% 30% 20% 33.6% 24.7% 0%

Free Cash Flow billions XOF

508

557

591

50% 40%

221 166

204
7 7% -7.7%

13 2008
Equity

51
2.56%

54 2010

9 14% 10% 9.14%

2009
Financial debt

2008

2009
Free Cash Flow Variation

2010

Debt/equity ratio

Debt billions XOF


300

a significant and sustained generation of cash low debt equity ratio below 10% cash flow from operations more than 5 times the financial liability

264
20.3

280

280

25 20 15

250 200 150 100 50 0

55 5.5

52 5.2

10 5 0

51 13 2008
Cash flow

54

2009
Financial debt

2010
Debt coverage ratio

25

3.a stock price growth of 25%


monthly average stock price 160 000 pic of the month

154 000
150 000

150 000

150 000 145 000 149 474

151 118

140 000

140 000 144 707 140 000 140 000 135 000 138 435 135 000 135 000

140 000

139 639

135 263
130 30 000

136 386

134 636 133 859 134 800

125 000 120 000 123 800

127 687

120 000

119 449
110 000

100 000

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3.dividend

exercices share price on 31/12 dividend (millions de Fcfa) net dividende par share dividend growth dividend yield distribution rate (%)

2000
21 000

2001
20 000

2002
20 000

2003
22 500

2004
36 030

2005
67 015

2006
91 000

2007
175 000

2008
130 000

2009
120 000

2010
154 000

29 000

29 000

29 650

44 000

56 500

69 000

88 300

110 000

130 000

135 000

140 000

2 610

2 610

2 668

3 960

5 085

6210

7 947

9 900

11 700

12 150

12 600

2%

0%

2%

48%

28%

22%

28%

25%

18%

3,85%

3,7%

12%

13%

13%

18%

14%

9%

9%

6%

9%

10%

8%

61%

55%

57%

69%

66%

65%

68%

65%

73%

73%

74%

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3.wealth creation: major actor of the telecommunication sector


project to build new submarine cable ACE*
The submarine cable ACE (Africa Coast to Europe) will allow the greatest number of countries in the western are of Africa to access the network high-speed world. This new optic cable fiber, length 17 000 km in its current configuration, will be put into service in the first half of 2012. It will serve 23 countries, either by direct access to countries along the coast or through a connected country for countries with no access to the sea. The cable construction represents p an investment of about U.S. $ 690 million for the consortium, of which about 180 million U.S. dollars which should be supported by the various subsidiaries. For these major investments, France Telecom-Orange embodies two components of its strategy to democratize access to Internet (narrowband and broadband) in Africa where the group operates in fifteen countries and contribute to developing the quality of service. It provides connectivity to the foreground and opens a new range of innovative services to promote economic and social development of f the continent.

*source: France Telecom 28

4 prospects

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4.prospects
Our markets are still characterized by increased competition competition, development of abundance and multisim. The group has maintained its strong position on all its markets and maintain its market share value. On the new subsidiaries of Guineas, the commercial and financial performance have been greatly improved. Competition should remain strong but the group should maintain its strong position in its markets by continuing its policy focused on: providing a high quality technical service and commercial retention of its best customers development of innovative and appropriate offers to customer needs, easy to access and use improving customer relationship around the values of the Orange brand with the set up of our new CRM Macroeconomic prospects remain good in 2011 with a projected GDP growth on all our countries of presence better than 2010. Tax and regulatory pressure is however an element of concern in our environment. Our growth outlook is supported by: development of broadband, mobile data and X play offers development of value added services and contents improving macroeconomic and institutional environments of our guinean subsidiaries and their commercial position ii development of the coverage of our networks to get the residual potential penetration in Mali, Guinea and Guinea Bissau the continuation of our development through external growth

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4.other issues/Brvm situation

political situation in Ivory Cost which affects the functioning of some institutions in the subregion transfer of offices and staffs of the Brvm and DC/BR in Bamako Mali due to the situation in Ivory Cost trading g on the Brvm was closed on february y 11th then opened p march 1st with new Brvm offices in Mali

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5 appendix

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5.Senegal

overview of country economic evolution - GDP 12.7 billion $, GDP growth: 3.5% (2010) - GDP by sector: agriculture 13.8%, industry 23.3% and services 62.9% - population below poverty line: 54% - inflation rate 2010: 0.9% overview of population dynamics - population: 12.3 million, growth rate: 2.5% - urban b population: l ti 42% of f total, t t l urbanization b i ti rate: t 3.1% - literacy: 39.3% of total population specificities of the telecom market - fiber-optic network - 2/3 of fixed line service connections are in Dakar - fixed-line fixed line service in rural areas needed - mobile-cellular service is expanding rapidly - international: SAT-3/WASC fiber optic (Europe and Asia), Atlantis-2 (South America) and satellite earth station-1 Intelsat (Atlantic Ocean)

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5.Mali

overview of country economic evolution - GDP 8.9 billion $, GDP growth: 5.1% (2010) - GDP by sector: agriculture 45%, industry 17% and services 38% - population below poverty line: 36.1% - inflation rate 2010 : 2.1% overview of population dynamics - population: 13.7 million, growth rate: 2.6% - urban b population: l ti 32% of f total, t t l urbanization b i ti rate: t 4 4.8% 8% - literacy: 46.4% of total population specificities of the telecom market - domestic system unreliable but improving, provide only minimal service - fixed lines availability is gradually increasing, number of subscribers remains under 1 per 100 persons - mobile-cellular number of subscribers has increased sharply over the last years - international: satellite earth stations-2 intelsat (Atlantic and Indian Ocean)

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5.Guinea

overview of country economic evolution - GDP 4.394 billion $, GDP growth: 3% (2010) - GDP by sector: agriculture 24.2%, industry 38.5% and services 37.3% - population below poverty line: 47% - inflation rate: 15.4% overview of population dynamics - population: 9 million, growth rate: 2.6% population p 34% of total, , urbanization rate: 3.5% - urban p - literacy: 29.5% of total population specificities of the telecom market y of open-wire lines, small radiotelephone - inadequate system communication stations and new micro wave radio relay system - Conakry reasonably well covered, coverage elsewhere remains inadequate - mobile-cellular number of subscribers has increased sharply over the two last years - 6 competitors in mobile service - international: Satellite earth stations-1 intelsat (Atlantic O Ocean) )

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5.Guinea Bissau

overview of country economic evolution - GDP 826 million illi $, $ GDP growth: th 3 3.5% 5% (2010) - GDP composition by sector: agriculture 62%, industry 12% and services 26% - inflation rate 2009: 1.5%

overview of population dynamics - population: 1.5 million, growth rate: 2% - urban population 30% of total, total urbanization rate: 3.2% - literacy: 42.4% of total population

specificities of the telecom market - small system - combination of microwave radio relay relay, open wire lines - radiotelephone and cellular communication fixed line teledensity under 1 per 100

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5.board of directors members


Marc Rennard, Chairman Christophe Eouzan, Administrator, FT representative Bernard Ghillebaert Ghillebaert, Administrator Administrator, FT representative Jean Paul Cottet, Administrator, FT representative Cheikh Sidya El Moctar Bye, Administrator representing the State of Senegal (Department of Economics and Finances) Thierno Ousmane Sy, Administrator representing the State of Senegal (Presidency of the Republic) Moustapha Sarr, Administrator representing the State of Senegal (Ministry of the Army) y) Abdoulaye Camara, representing Financial Control of the State of Senegal Ibrahima Kont, Administrator representing the staff of Sonatel Victor Gorom Ndiaye, independant Administrator
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5.organization
Sonatel General Manager
Risk and Quality Sonatel Sonatel Mobiles/Multimedia/ Mobiles/Multimedia/ Management Business Business Solutions Solutions Audit Sonatel Sonatel Mobiles/Multimedia/ Mobiles/Multimedia/ Security Business Business Solutions Solutions

Sonatel Mobiles/Multimedia/ Sonatel Sonatel Mobiles/Multimedia/ Multimedia/ Business Solutions Sonatel Business Business Solutions Solutions

Orange Mali Orange Guinea Orange Bissau


Sonatel Deputy Manager

Sonatel Sonatel Mobiles/Multimedia/ Mobiles/Multimedia/ Sonatel Foundation Business Business Solutions Solutions

Human Resources Business Solutions B i Business S Solutions l ti

Purchases and Business Solutions Business Solutions Logistics

Planning and Business Business Solutions Strategic Solutions Marketing

Operating Network Business Business Solutions & Solutions IT

International Business Solutions Business Operations Solutions

Distribution & Business Solutions Business Solutions Services

Finance Business Solutions Business Solutions and Accounting

Engineering Network Business Business Solutions & Solutions IT

Regulation and Business Business Solutions Legal Solutions Affairs General Public Marketing
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Corporate Services

5.Senegal - competitors
Sentel
Parent co. et brand

3rd license in Senegal g

Millicom International ownership License of 20 years in July 1998 Commercial launch in 1999 Rebranded in Tigo on December 2005 Financial data (Millicom Africa 2010) Revenues: US $ 905 million Ebitda margin: 39.6%

3rd global license (fixed, mobile and international) for Sudatel on September 2007 for US$ 200 million (Bintel - US$ 152 million, million Celtel - US$ 105 million) Sudatel began its operations at the beginnings g Expresso p brand of 2009 through Subscribers
9% market shares

GSM Subscribers 31% market share GSM 900 Network

Sentels brand

Financial data ( (Africa) )

Operating revenues : US$ 550,340,082 2010

Millicom 7 operations

Sudatel 5 operations

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5.Mali - competitors

O Ownership hi State of Mali (49%) Maroc Telecom (51%) set up in 1989 Commercial launch in 1990 Malitel as mobile operator (1999) GSM subscribers f market k t share h 31% of GSM 900 network 3G license obtained at the privatization

Maroc Telecom bought 51% stake in Mali phone company Sotelma for 275 millions euros ($382 8 million) the deal was realised on July ($382.8 8th 2009

Maroc Telecom, Telecom which is 53% owned by France's Vivendi and 30% by the Moroccan State, has expanded into Mauritania, Burkina Faso and Gabon s since through aso a d Gabo ce 2006 006 t oug acquisitions

launched a 56 billion investment p program g in 2009 in order to renew their infrastructures.

certified ISO 9001 (2008version) the February 24th ,2011

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5.Guinea - competitors
ownership

Intercel now owned by Expresso (30% in 30th June 2010 2010- 100% by 28th Feb 2012)

ownership MTN (75%)

State of Guinea (100%)


commercial

commercial launch in April 2005 GSM subscribers 36% market share

launch in

1993
GSM

ownership Teylium (100%) launched in 2006

5%

market share

subscribers

14% market share


MTN 21 operations

Privatization

forecasted and will be directed by Gide Loyrette Nouel law firm


6th operator coming

Cellcom

440 871 subscribers, launched in 2008

17%

market share

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5.Guinea Bissau - competitors

Shareholding State of Bissau (90%) Staff (10%) Set up in 1995 GSM Subscribers 4.1% market share

Shareholding MTN (100%) Commercial launch in June 2004 GSM subscribers 64.9% market share

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thank you y

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