CEO Message

FY18/19 budget
Building Africa’s digital future

2nd October 2017

FY 18/19 budget
Creating a budget that aligns to and supports our digital transformation strategy

“We have to focus on services of the future and new

revenue streams not as a side show to infrastructure
but as the main show leveraging off the
Disrupt infrastructure which we have.”
Nic Rudnick
or get
“It is nearly impossible to recover from a missed
market transition or new business model. Do not
disrupted underestimate your competitor of the future – not
your competitor of the past.”
John Chambers
Digital transformation opportunity
Focus By Year-End 2017, Over 70% of the G500 Will Have
70% Dedicated Digital Transformation and Innovation
Teams1

Investment By 2020, 50% of the G2000 Will See the

Majority of Their Business Depend on Their
50% Ability to Create Digitally Enhanced Products,
Services, and Experiences1 Digital transformation
is a $4.5T TAM3
Benefits “Businesses that use AI, big data and IoT
technologies to uncover new business insights
$1.2T “will steal $1.2 trillion per annum from their less
informed peers by 2020” 2

By 2019, 3rd Platform Technologies (cloud,

Massive Public
mobile, social, and big data technologies) and
Cloud Growth 75% Services Will Drive Nearly 75% of IT Spending
— Growing at Twice the Rate of the Total IT
Market 1

$43BFY14
in managed services
cloud projects by 20183
$91.7B
(1) IDC FutureScape: Worldwide IT Industry 2017 Predictions
in Hybrid Cloud (2) IDC: Worldwide IT industry FutureScape, Nov.
(3) Microsoft: Inspire Conference 2017
Solutions by 20213
 Project Steam
when liquid heats up it gets disrupted and turns to
steam which drives the Liquid Telecom engine
Project Steam
Corporate Objectives Strategies
Launch services of the
future and generate new
revenue streams
leveraging off our
infrastructure
Protect against disruption
by non-telco players
disintermediating our core
network business
Strengthen our company
through digital
transformation and
customer experience
Prepare the business for
“digital native” buyers
Reach 200M people in our
market with a compelling
digital offer
Centres of Excellence
OTT ourselves - create a
Digital Liquid Telecom in
18 months, becoming a
digital innovator,
transforming the business
outcomes of our
customers
Start with the customer,
work back - delight our
customers
Develop strong
partnerships to accelerate
capability growth
Reinvent processes and
customer journeys through
automation and agile
processes
Create a transformational
project engaging all
OpCos and CoEs to
collaborate on building
our digital future
OpCos
Coordinate with OpCos to
leverage scale for
efficiency
Create scalable, efficient
frameworks with OpCos
Assist OpCos build talent
and capabilities with focus
on agility and learning.
Support OpCos with
reusable marketing and
sales collateral and
training
Create group business
cases, with OpCo inputs, to
leverage our scale
Establish and manage
global partnerships
Project execution
Execute locally on group
objectives and strategy
Create local strategies and
product offerings best
suited to local markets
Use CoE frameworks to
accelerate and standardise
processes, driving
efficiency
Carry and be accountable
for revenue lines of new
products such as UC,
Office 365 and Azure.
Provide inputs to group
business cases based on
local market intelligence
Each OpCo and CoE will
create their own Project
Steam aligned to group
Create a transformation
budget, with necessary re-
alignment of resources.
CoEs provide frameworks,
OpCos localise and
execute
Exco will review and
approve the individual
projects
FY17/18 is planning and
foundation work and
FY18/19 is execution
Regular coordination
meetings and reporting of
progress
As leaders, WE MUST own DX…
WHY?
WHO?

WHERE?
HOW?

WHAT?
WHAT IF?

WHEN?
Emerging telco business models
Core Segment Break even KPIs Expected Gross Margin Key success factors Cloud enablement partner value

SMB and  40/100k Seats 4-6%  Quick on-boarding process and  Reduce barriers of entry
Cloud Reseller Consumer  > 40 resellers reseller program  Provide a decent ISV catalogue
(Distributor)  10-18 months  Multi-reseller operations and (federation)
Reselling or distributing processes  Enable some GTM programmes
non-core products  Additional margin-driven SKUs  Odin Automation: Billing, Provisioning,
(Cloud and non-Cloud)  Rebate management (managing Self-Service, Online Store
i.e. CSP, SaaS Security, Microsoft)  APS catalogue
Standard IaaS for SMB  Everyday low prices  Multi-country business and technology
etc enablement based on mature product
and experience

Large  3-5 customers 30-35%  Access to customer powerbase  Managed services to assure quick
IT B2B Accounts and  80-150kusd  Strong expertise (partnership) in IaaS GTM and smooth transition to Liquid
Powerhouse Enterprise ARPU  Portfolio/Replication of Services personnel in BOT model
Providing professional  10 months  Packaging of IP and Practices  Catalogue of professional services for
services to its  B2B marketing investment Liquid to offer to its enterprise
customers. IaaS  People/Talent investment customers
projects for Enterprise
customers.
Total  >20k seats > 45%  Reduction of operational costs  Ensure Operational Efficiency and
Digital Addressable  3-6 months  Efficiencies and Product catalogue (IT) Savings
convergent Market  Operational Savings  Enablement of Liquid as a true
Savings in  Provisioning automation convergent (IT+Telco) provider with the
Telco Efficiency (Cost  Bundling with physical assets services like Connectivity, IPTV via APS
Automating core telco per Installation,  Flexible growth business and pricing integration based on existing Odin
services (connectivity, CPOD) Model Practices implemented worldwide
IPTV etc)  Quick ramp-up using core and existing
business models
It’s about: Everyone & Everything
• DX affects every aspect of our operations:
– From defining our own unique digital proposition, to
– Creating digital customer, staff and supplier interactions &
experiences, to
– Moving away from silos (i.e. individual channels), to
– New business structures and IT processes that are fast, flat
& highly collaborative, to
– Agile IT systems that enable quick, simplified and on
demand online offers, to
– Creating compelling digital products & services for Buyer
Customers get it…?
Customers!

DX all about them…

By being intimately “connected” to them…
AND
By being highly “connected” ourselves…
Creating a Digital Liquid Telecom Digital
Convergent
in 18 months IT B2B
Telco
Smart Pipe
Powerhouse Scale to reach new Channels and
Segments:
 Onboard Connectivity (Retail, WS)
along with IP TV
Everything as a Service:  Based in Best Practices developed
• Extend Strategic Agreement
worldwide
covering Ingram Micro Asset
Cloud Reseller Management and Hardware
 One dev-ops organization committed to
excellence, growth and disruption
Distribution
• Provide a Subscription
Management Platform to develop
IoT, Enhanced Services
Corporate Objectives Provide Digital Transformation Services:
 Disrupt ourselves SEGMENTS
 Onboard Professional Services Catalog to ensure lean
operations Azure deployment
before others do AND SERVICES Best Online Digital Market:  Focus in Migrations | Public Cloud Azure, and
 Reach 200M  Provide a unified support-onboard Labor/control intensive Tasks and Projects
services experience to MVNO, mid-  ABC-cost based pricing (no fixed costs associated to
Addressable Market channel and large enterprises this)
 Diversify Revenue  Provide a branded portal and CSB-  Increase activation rates by higher level of target
support experience oriented activity
Streams CUSTOMER
 Transform Portfolio SERVICE OPS
Integrate Core platform and Customer Service operations model.
and Brand

USERS
 Blend support and operational activities maximizing economies of scale
 Prepare for a New PLATFORM
 Onboard extended services catalogue at marginal cost
 Seamless integration of services/operations management
Buyer behaviour OPERATIONS
 Deploy a multichannel operation
ONBOARD

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